SK Telecom, South Korea’s largest mobile carrier by market share, is the only bidder for a stake worth $2.8 billion in Hynix Semiconductor Inc., a leading computer-chip maker. According to reports, Korea Exchange Bank said that no other bidders came forward for the 20 percent stake (146.1 million shares) in the computer-chip company.
As per sources, the South Korean telecom operator is looking to diversify its businesses to secure new growth drivers beyond the almost saturated domestic telecom market. However, industry analysts have raised certain uncertainties regarding the completion of the deal as the parent company’s chairman is still under investigation for allegations of embezzlement.
Further, as per industry reports, analysts have also raised concerns regarding the financial strain on the company as a result of the increased investment in the advanced network technology as well as the substantial capital expenditures required to keep up with the technological upgradation in the chip production lines.
