Doosan Group has secured exclusive negotiating rights to acquire a controlling stake in SK Siltron Co., South Korea’s only dedicated semiconductor wafer producer, according to people familiar with the matter. The industrial conglomerate is pursuing SK Inc.’s 70.6% holding in the company, valued at just under 5 trillion won ($3.6 billion).
The transaction would mark Doosan’s largest acquisition since it bought construction equipment manufacturer Bobcat in 2007. Yet financing poses a considerable challenge. Doosan Corp., the group’s holding entity, maintains approximately 200 billion won ($144 million) in cash—representing less than 15% of the estimated 1.5 trillion to 2 trillion won ($1.1 billion to $1.4 billion) equity requirement after deducting SK Siltron’s roughly 3 trillion won in debt.
The company is pursuing leveraged financing from domestic banks and exploring potential partnerships with financial investors, sources said. Doosan beat out several private equity firms including Hahn & Co. and MBK Partners, which previously withdrew from the process.
SK Siltron ranks third globally in 12-inch silicon wafer production, trailing Japan’s Sumco and Shin-Etsu. The wafer maker reported 2.13 trillion won in revenue last year with earnings before interest, taxes, depreciation and amortization of approximately 640 billion won.
SK Group is divesting assets to address a debt-to-equity ratio exceeding 300%. SK Chairman Chey Tae-won’s 29.4% personal stake remains outside the transaction. Doosan aims to finalize an agreement by year-end, led by Park Sang-soo, the eldest son of Chairman Park Jeong-won and a former semiconductor analyst who joined the group’s strategy team last year.
