SEOUL, South Korea-SK Telecom announced its long-awaited share swap with rival Korea Telecom. The companies will exchange more than 29.8 million KT shares, a 9.64 percent stake, held by SK Telecom and more than 8.2 million SK Telecom shares, a 9.27 percent stake, held by KT.
Pricing for the stock exchange will be one of two alternatives presented. The shares will be exchanged at $42 per KT share and $185 per SK Telecom share. The share prices reflect five-day market prices from Nov. 4 to Nov. 8. Or SK Telecom will pay a fixed amount of $276.8 million to KT, and the exchange price for both shares will be refixed accordingly.
The agreement is valid until Jan. 15 with a further extension if necessary.
SK Telecom is battling with competitor KTF, the wireless subsidiary of KT, for market share, and SK Telecom in May upped its stake in KT to 11.34 percent, spurring the feud. Korea Telecom has a long-standing 9.27-percent stake in SK Telecom.
At the time, SK Telecom said it would lower its stake in KT to less than 10 percent.
