SK Telecom to conduct spinoff in November for future chip technology

SK Telecom, South Korea’s top wireless carrier, decided on Thursday to spin off a new investment company in November to expand its foothold in new tech sectors, as well as conduct a 5-for-1 stock split aimed at improving shareholder value.

The wireless carrier’s board of directors approved the spinoff plan, and the new company, tentatively named SKT Investment Co., will be split on November 1, according to a company regulatory filing.

Under the spinoff, SK Telecom’s shares will be divided 6-for-4 between the remaining telecom-focused entity and the new investment firm.

The wireless carrier had announced the spinoff plan in April in a move to strengthen its tech subsidiaries and increase investment into new sectors, including the semiconductor industry, reports Yonhap news agency.