Go to contents

KT Proposed SKT to Swap Shares

Posted May. 25, 2002 09:14,   

한국어

Lee Sang-chul (photo) representative of KT (former Korea Telecom) said on the 24th, “we would accept the swap of shares with SK Telecom, when SK Telecom proposes to do so. ”

In the meeting with press, KT CEO Lee said, “it is awkward that SK Telecom, largest mobile telecom operator in Korea, is the largest shareholder of KT, largest fixed-line company. ”

By the government’s stake sale, an effort to privatize KT, SK Telecom came to hold 11.34 percent of KT shares along with exchangeable bonds (EB). And KT holds 9.27 percent of stake in SK Telecom.

He added, “if the reason of SK Telecom’s participation in KT privatization were to keep in check with Samsung, and to prevent the drop of stock price due to the stake of SK Telecom belonging to KT, the problem was settled already. We can swap as many shares as to make Templeton Investment Trust Fund the largest shareholder, current second large shareholder, when the swapping of entire stake is difficult. ”

Templeton currently holds 4.4 percent of stake in KT with Depository Receipt (DR). And Microsoft holds 3.0 percent of stake in KT, and LG Electronics 2.27 percent with Bond with Warrants (BW).

He stressed, “when SK Telecom tries to keep current stake or to secure more stake, we will adopt striking measures. ”

SK Telecom, however, turned down the proposal of Lee, saying, “we could consider it in the long term, but we are not considering the share swap at all. ”



Im-Sook Ha artemes@donga.com