SK selects Doosan as preferred bidder for wafer subsidiary sale

SK Group has selected Doosan Group as the preferred bidder for the acquisition of a 70.6 percent stake in its semiconductor wafer subsidiary, accelerating a long-delayed divestment as part of its broader portfolio rebalancing effort.

SK building in Jongno District, central Seoul [YONHAP]

SK Group has selected Doosan Group as the preferred bidder for the acquisition of a 70.6 percent stake in its semiconductor wafer subsidiary, accelerating a long-delayed divestment that could capture at least 3 trillion won ($2 billion) as part of its broader portfolio rebalancing effort.

“Detailed terms will be determined through negotiations with the preferred bidder, and the company will make a follow-up disclosure once relevant matters are finalized or within three months,” SK said in an electronic filing on Wednesday. SK has been pursuing the sale since April and has held discussions with multiple private equity firms.

SK initially acquired the proposed stake of in its wafer manufacturer in 2017 from LG and financial investors for 790 billion won, in a move to vertically integrate its chip supply chain. The remaining 29.4 percent was purchased by SK Group Chairman Chey Tae-won, which was exempted from the current sale discussions.

Since last year, SK Group has been streamlining its business structure through mergers and asset disposals to reduce leverage and improve liquidity. According to government data released last year, SK had the largest number of subsidiaries among Korean conglomerates, totaling 219.

In March, SK sold an 85 percent stake in SK Specialty, its gas and chemicals affiliate, to private equity firm Hahn & Company for 2.6 trillion won. The group has also completed a series of restructures, including the merger of SK Innovation and SK E&S, the merger of SK On and SK Enmove and the divestment of environmental units by SK ecoplant.

SK siltron is the world’s third-largest producer of 12-inch semiconductor wafers by market share. Markets estimate the company’s valuation at more than 5 trillion won, with the transaction expected to be priced between 3 trillion and 4 trillion won.

If finalized, the deal would allow Doosan to strengthen its semiconductor business, spanning wafer production through chip testing. Doosan Tesna, acquired in 2022, specializes in non-memory semiconductor testing, while Doosan’s electronics materials division manufactures copper-clad laminates used in semiconductor substrates.

Doosan began reshaping its portfolio toward machinery and heavy industry in 2007 following the acquisition of Bobcat, then a U.S.-based construction equipment maker now operating as Doosan Bobcat. After a major restructuring in 2020, the group’s business is now organized around three core pillars: smart machines, clean energy and semiconductors and advanced materials.

BY LEE JAE-LIM [lee.jaelim@joongang.co.kr]