SK Telecom plans to sell its 3.8 pct stake in China Unicom

SEOUL, Sept. 28 (Yonhap) -- SK Telecom Co., South Korea's leading mobile carrier, announced Monday that it has decided to sell its 3.8 percent stake in China Unicom Ltd. back to the Chinese mobile carrier.

In July 2006, SK Telecom purchased convertible bonds worth US$1 billion from
China Unicom, a listed company on the Hong Kong Stock Exchange. Later in August
2007, the company converted China Unicom bonds into shares.
SK Telecom estimated that the total proceeds of the stake sale will amount to 1.5
trillion won ($1.26 billion). The sale of shares is expected to be completed in
mid-November after gaining approval from independent shareholders of China
Unicom, SK Telecom said.
"This decision falls in line with our vision of becoming a global ICT
(information and communications technology) leader, under which we are making
efforts to expand our areas of interest to convergence business that includes
distribution, Internet and finance," the South Korean mobile operator said in a
statement.
The company added the decision to sell China Unicom shares is part of a broader
move to adjust its business portfolio to better reflect changes in overall growth
strategy.
SK Telecom said it is planning to use the proceeds from the sale of shares to
secure financial soundness and to acquire research and development capability to
strengthen its competitiveness.
The company emphasized it will continue to maintain its partnership with China
Unicom, adding that it plans to increase its existing business presence in China.
ygkim@yna.co.kr
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