SK Inc. has opened a competitive bidding process for its 70.6% stake in SK Siltron, South Korea’s only silicon wafer manufacturer, involving four major domestic private equity funds: MBK Partners, Hahn & Co, IMM PE, and STIC Investments. The investment banking industry reported this development on April 15, marking a significant shift in the nation’s semiconductor sector.
Initially expected to be sold primarily to Hahn & Co, the process has evolved into a “four-way contest,” with SK Inc. signing non-disclosure agreements with all four firms. The deal, valuing SK Siltron at approximately 5 trillion won ($3.44 billion), is part of SK Group’s broader strategy to reduce debt accumulated during its expansion since 2019.
Private equity funds will evaluate their bidding intentions over the next 4-5 weeks, with the sale proceeding through preliminary and main bidding stages. Semiconductor wafers are classified as national core technology, requiring government scrutiny by the Ministry of Trade, Industry and Energy for foreign sales.
Hahn & Co holds an advantage in the process, having already acquired nine SK Group affiliates, including the recent 2.6 trillion won purchase of SK Specialty. A successful sale would provide SK Inc. with significant financial relief, potentially reducing its debt ratio from 86% to around 50%.
SK Siltron, which ranks as the world’s third-largest manufacturer of semiconductor wafers after Japan’s SUMCO and Shin-Etsu Chemical, has grown substantially since SK acquired it from LG Group in 2017. The remaining 29.4% stake is held by SK Group Chairman Chey Tae-won through a TRS contract with a securities firm.
