SK Telecom to issue bonds ahead of planned spin-off Bond offering to be the last one before launch of SK Square early next month
Translated by Kim So-in 공개 2021-10-20 08:11:03
이 기사는 2021년 10월 20일 08:08 thebell 에 표출된 기사입니다.
South Korea’s largest wireless carrier SK Telecom plans to issue multi-tranche corporate bonds thanks to its strong presence in the market.SK Telecom will hold its book building process on Wednesday for its multi-tranche 200 billion won ($169 million) bond offering, which includes three-, five-, and 20-year debts. SK Securities and Mirae Asset Securities are handling the offering.
SK Telecom’s planned non-telecom spin-off as SK Square on November 1 is heightening uncertainties of the company's business. The upcoming bond offering will be the last issuance before the spin-off.
The bond’s credit rating will remain the same because the companies will jointly be responsible for previously issued bonds. However, changes are likely after the spin-off, depending on each firm’s operating cash flow and borrowings.
Under the spin-off, SK Telecom’s stake in its chipmaking affiliate SK hynix, app market operator ONE Store, e-commerce platform 11Street and T Map Mobility will be transferred to SK Square. Accordingly, SK Telecom's financial buffer is expected to weaken in the short term. SK Telecom has invested about 6.5 trillion won in subsidiaries and joint ventures subject to transfer, including SK hynix.
The value of SK Telecom’s 20.1% stake in SK hynix will increase if the stake is revalued using an equity method instead of a cost method.
The stake in SK hynix has been valued based on its book value of 3.37 trillion won in 2012 when it was acquired by SK Group. If it is recognized as a market price of around 19.3 trillion won through the equity method, the value of SK Square, a newly established company, will increase whereas the value of the surviving SK Telecom will decrease.
SK Telecom’s net assets will increase from 17.19 trillion won to 26.16 trillion won if the market price is reflected in its stake in SK hynix. The amount that will be transferred to SK Square will also sharply increase from 6.93 trillion won to 15.8 trillion won. This means 60.4% of SK Telecom’s net assets will be transferred to SK Square, instead of 40.3%.
Meanwhile, SK Telecom will be left with most of the borrowings. The net borrowings remaining at SK Telecom after the spin-off is expected to reach 8.14 trillion won. A decrease in financial leverage seems inevitable along with a decrease in capital.
Instead, SK Telecom is expected to maintain its strong operating cash flow thanks to its traditional telecom businesses, including SK Broadband and SK Telink. (Reporting by Chan-mi Oh)
< 저작권자 ⓒ 자본시장 미디어 'thebell', 무단 전재, 재배포 및 AI학습 이용 금지 >
관련기사
best clicks
최신뉴스 in 전체기사
-
- [아시아나 화물사업부 M&A]MBK 손잡은 에어프레미아, 다크호스 등극
- [대기업 프로스포츠 전술전략]전북현대, '돈방석' 기회 끝내 놓쳤다
- 골프존, 주가 하락에 발목잡혔나…GDR 분할 '무산'
- [Art Price Index]시장가치 못 찾은 퍼포먼스 작품
- 하이브 '집안싸움'이 가리키는 것
- 이익률 업계 톱인데 저평가 여전…소통 강화하는 OCI
- KB금융, 리딩금융의 품격 ‘주주환원’ 새 패러다임 제시
- 대외 첫 메시지 낸 최창원 의장의 속내는
- KG모빌리티, 라인 하나로 전기차까지
- [이사회 분석]갈 길 바쁜 LS이브이코리아, 사외이사 없이 간다