SK Telecom abandons cellphone production

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SK Telecom abandons cellphone production

SK Telecom, Korea’s largest mobile service provider, will no longer be involved in the manufacturing of cellphones. The company decided at a board meeting yesterday to sell most of its shares in its cell phone manufacturing subsidiary, SK Teletech, to the Pantech group. SK Teletech produces SKY brand handsets. Pantech and its affiliate Curitel are the third largest cellphone maker in Korea behind Samsung Electronics and LG Electronics. By taking over SK Teletech, however, Pantech jumps to the No.2 slot. SK Telecom holds 89.1 percent of SK Teletech’s shares, but will keep only 29.1 percent, giving the rest to Pantech. The takeover will cost 300 billion won ($299 million), at around 66,000 won per share. The companies have not disclosed details, but Pantech promised to retain all workers at SK Teletech for at least three years.
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