SK Group's sale of SK Siltron is expected to be effectively confirmed at the board meeting at the end of this month.
According to industry sources on July 28, departments involved in the sale of SK Siltron are reportedly preparing for organizational and operational transitions. This is seen as a precautionary measure ahead of the SK Group board meeting scheduled for July 31, where the direction of the sale will likely be decided.
Multiple insiders familiar with the situation at SK Siltron indicated, "There is a prevailing sentiment within the company that a sale is likely, and some preparations for organizational and operational transitions are already underway."
SK is considering presenting a proposal to sell its 70.6% stake in SK Siltron at the board meeting on July 31. Since selecting Doosan as the preferred bidder in December 2022, SK has been negotiating price and transaction terms for about seven months.
Initially, a decision on the sale was expected in the first half of this year. However, with the semiconductor supercycle driving up SK Siltron's corporate value, opinions within SK have diverged between those advocating for a timely sale and those arguing for a higher price.
SK Siltron is the only semiconductor wafer manufacturer in South Korea and ranks among the top three in global market share. Wafers are essential materials that serve as substrates for semiconductor circuits, used across the entire industry, including memory and system semiconductors.
Industry experts believe that the upcoming board meeting will provide momentum for the sale of SK Siltron. Doosan, the potential acquirer, has reportedly completed its funding arrangements. Concerns about a potential "good faith" issue if the sale is withdrawn after being selected as the preferred bidder also bolster the likelihood of the sale.
If the transaction is successful, it will put Doosan Group's semiconductor business on a solid path. SK Siltron is considered a key component in completing Doosan Group's semiconductor value chain.
Currently, if SK Siltron is integrated with Doosan's Electronics BG division and its subsidiary Doosan Testna, the semiconductor business portfolio is expected to be more robust, covering everything from materials to processes.
However, there are significant challenges to address. There is pressure to manage the financial burden of the large acquisition while also demonstrating visible synergies between SK Siltron and existing semiconductor affiliates.
Negotiations with the SK Siltron labor union, which has opposed the sale, regarding job security and working conditions are also seen as a post-acquisition issue. The union is demanding 100% job security and severance payments, reflecting concerns that employment stability and working conditions may become uncertain during the transition of ownership.
* This article has been translated by AI.
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