KT held a board meeting on the 21st and announced that it will sell its affiliate KT Powertel to IDIS, a digital security equipment manufacturer.
KT selected IDIS as the preferred negotiator for the sale of KT Powertel on January 11th. Afterwards, it was decided to sell the entire 44.85% stake in KT Powertel through negotiation procedures. The sale price of the stake is 40.6 billion won.
This is the first sale of subsidiary companies after Lee Sang-mo took office. In particular, the sale of affiliates in the telecommunications sector is virtually the first since privatization.
Since CEO Koo had predicted the restructuring of the group with a focus on growth potential, there is a prospect that further restructuring will continue. In addition, since a large-scale personnel from affiliates is ahead of the shareholders’ meeting, attention is drawn to the future actions.
On the 4th, CEO Koo emphasized new growth through the transition from the new year ceremony to a digital platform company. He expressed his determination to challenge new businesses with high growth potential by using the strengths of AI, big data, and cloud.
With the sale of KT Powertel, KT plans to reorganize the KT Group portfolio into a platform company focused on growth businesses such as finance, media, and contents by concentrating its IT and communications business capabilities and securing resources for new growth engines.
In addition, by announcing the merger between KTH and KT M House last year, the company decided to strengthen its distribution business capabilities by launching a digital commerce company.
Meanwhile, IDIS, acquiring a stake in KT Powertel, was the first company to develop DVR in 1998. IDIS Group has acquired Kotec, an industrial display company, and BIXOLON, a label printer company.
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IDIS plans to expand the wired network-based CCTV integrated control solution to a wireless network-based integrated control system by utilizing KT Powertel’s wireless business and radio capabilities based on this M&A experience.
KT and IDIS plan to conclude the contract through a general shareholders meeting of KT Powertel by the end of March. In addition, KT Powertel is a key telecommunications service provider, and in the case of a merger or acquisition, the regulatory body, the Ministry of Science, ICT, and ICT must be approved.