KT sells its subsidiary for radio methods KT Powertel
KT has selected IDIS, a local provider of security solutions, as the preferred bidder for a majority stake in its radio system subsidiary KT Powertel, the company announced on Friday.
KT’s board of directors approved the sale of its 44.85 percent stake in KT Powertel, valued at 40.6 billion won, in a meeting held on Friday. It is not known how much IDIS offered for payment.
KT expects the deal to be completed by the end of March this year.
With the sale of shares, the South Korean telecommunications company is intended to accelerate corporate restructuring and expand its platform business.
CEO Ku Hyeon-mo, who took office in March 2020, said the company is committed to growing its non-telecom business. Ku also hinted that the company would increase its investment in cloud and artificial intelligence businesses.
In November, KT decided to merge the TV-based trading platform operator KT Hitel with the mobile coupon and advertising unit KT mhows by June 2021. The merger was Ku’s first step in realigning companies.
Industry sources say KT could push for more asset sales this year to boost IT and platform businesses.
KT currently has 44 subsidiaries under its wing. Around 30 subsidiaries are non-telecommunications companies.
By Shim Woo-hyun (firstname.lastname@example.org)