SK headquarters in Seoul (SK Inc.)
SK headquarters in Seoul (SK Inc.)

SK Group is considering selling its controlling stake in SK Siltron, a semiconductor wafer producer, as part of restructuring efforts to secure liquidity, industry sources said Wednesday.

If completed, the sale could generate trillions of won, with SK Siltron’s valuation estimated at around 5 trillion won ($3.4 billion).

SK Inc., the group’s holding company, which oversees its subsidiaries, has reportedly expressed interest in selling its 70.6 percent stake in SK Siltron to private equity firms, with Hahn & Company mentioned as a potential buyer, according to local media reports.

However, SK Inc. clarified that discussions are still in the very early stages, and no decisions have been made regarding the size of the stake to be sold or the identity of potential buyers.

"We are reviewing a range of strategic options regarding our stake in SK Siltron, including a potential sale, but no specific decisions have been made at this stage," the company said in a regulatory filing Wednesday.

SK Siltron is Korea’s only wafer producer and ranks third globally in market share for 12-inch silicon wafers.

SK Inc. currently holds a 51 percent direct stake in SK Siltron, which it acquired from LG Corp. for 620 billion won in 2017. It also owns an additional 19.6 percent stake through total return swap contracts with NH Investment & Securities, Korea Investment & Securities, and Samsung Securities — acquired for 169.1 billion won.

SK Group Chair Chey Tae-won holds the remaining 29.4 percent stake in SK Siltron through a personal TRS arrangement with the same securities firms. He purchased his shares for 253.6 billion won. As this is considered a personal asset, he is unlikely to sell his stake at this time.

The stake now reportedly up for sale includes the 51 percent directly by SK Inc., and the 19.6 percent linked through the TRS, totaling 70.6 percent.

While SK has not confirmed any details, Hahn & Company is being floated as a strong candidate. The private equity firm recently acquired an 85 percent stake in SK Specialty, another SK affiliate focused on specialty gases used in semiconductor manufacturing, for 2.6 trillion won.

SK Siltron specializes in producing semiconductor wafers, a critical material used in chipmaking. Its primary products include silicon wafers and silicon carbide wafers, which are key to high-performance semiconductors.


herim@heraldcorp.com