SKT to Set Up 'SK Horizon' for AIDC Business, Attracts About KRW 3.08 Trillion in Investment
IT DAILY ·
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SK Telecom is pursuing a spin-off of SK Broadband to reorganize the operating structure for its AI data center business.
The spin-off structure consists of the continuing company SK Broadband and the newly established SK Horizon, with existing shareholders' stakes preserved.
SK Horizon is tied to expanding AI infrastructure including data centers and submarine cables, attracting KRW 3.08 trillion in investment, and a structure in which SKT holds a 51% stake.
On the 27th, SK Telecom announced that it will pursue a spin-off of SK Broadband, its wholly owned AI data center (DC) subsidiary, to reorganize the operating structure for its AI data center (DC) business. The spin-off structure will divide the company into the existing SK Broadband and the newly established SK Horizon. Under the spin-off, existing shareholders will keep their ownership stakes, and shares in the continuing and new entities will be allocated accordingly.
The overall AI DC business will be overseen by SKT. The newly established SK Horizon will be responsible for operations and expansion, while SK Hyper will handle business development. The new company aims to expand domestic AI data center infrastructure.
The continuing company, SK Broadband, aims to innovate its wired, media, and enterprise businesses. The basis for the spin-off ratio is book value of net assets, and the ratio is 0.8351323 for the continuing company, or about 0.84, and 0.1648677 for the new company, or about 0.16.
SK Horizon is designed to take charge of expanding AI infrastructure, including existing and new data centers as well as submarine cables. Its scope includes 8 operating data centers and AI data centers under construction in places such as Ulsan and Guro, and it will pursue an infrastructure expansion totaling 318 megawatts (MW).
It will also be responsible for building submarine cables for global AI business, with a phased expansion plan in place. SK Horizon is structured to play the role of expanding AI infrastructure encompassing data centers and submarine cables.
SKT plans to use SK Horizon to expand its future AI infrastructure business based on expertise in AI DC operations and a rapid decision-making system. The expected head of the new company, SK Horizon, will be Kim Seong-soo, CEO of the continuing company SK Broadband, in a concurrent role, and the final process to confirm the chief executive appointment will take place at the new entity's board meeting after the spin-off is completed.
SKT has attracted KRW 3.08 trillion in investment from Kohlberg Kravis Roberts (KKR) and the IMM Investment-Stonebridge consortium (IMM consortium) for the new company. Once the staged investment is completed, the ownership structure will be KKR 29% and the IMM consortium 20%, while SKT will remain the largest shareholder with 51% and retain management control.
Using the governance overhaul as an opportunity, SKT has built an AI data center operating framework centered on SK Horizon and SK Hyper, which was established in July. In this framework, SK Hyper will focus on developing new AI DC businesses, with the goal of gradually opening 5 GW by 2029 and then sequentially expanding to 15 GW by 2035.
Source: IT DAILY · Seong Won-young
Original: https://www.itdaily.kr/news/articleView.html?idxno=241261
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Source: IT DAILY
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