SK Broadband to Spin Off Data Center and Subsea Cable Business into SK Horizon
SKM has more than doubled off its 52-week low of $19.66.
Summary
SK Broadband's board approved a horizontal spin-off of its data center and subsea cable businesses into a new unlisted company, SK Horizon Co., Ltd., effective February 1, 2027, with a 16.49% spin-off ratio and pro-rata share distribution to existing shareholders.
Key Events · M&A and Partnerships · SKM
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SK Broadband Approves Horizontal Spin-off
SK Broadband's board approved spinning off its data center (including CDN) and subsea cable-based international leased line businesses into a new unlisted entity, SK Horizon Co., Ltd. (tentative), effective February 1, 2027.
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Spin-off Ratio and Financials
Spin-off ratio is 0.1648677 for the Spin-off Company and 0.8351323 for the Surviving Company, based on March 31, 2026 book values. Spin-off Company net assets are KRW 475.8B out of SK Broadband's total KRW 2,886.1B.
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Capital Reduction and Share Allotment
SK Broadband will undergo a 16.48677% capital reduction. Shareholders will receive newly issued Spin-off Company shares pro-rata, with a record date of January 29, 2027.
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Timeline and Approvals
Spin-off EGM is scheduled for January 15, 2027, with effective date February 1, 2027 and registration February 2, 2027. The plan remains subject to shareholder approval and possible revision.
Analysis · SKM · Technology
SK Broadband, a material subsidiary of SK Telecom, will horizontally spin off its data center (including CDN) and subsea cable-based international leased line businesses into a new unlisted entity, SK Horizon Co., Ltd., effective February 1, 2027. The spin-off ratio allocates 16.49% of SK Broadband's net assets to the new company, with shareholders receiving pro-rata shares. This restructuring separates the high-growth AI data center infrastructure from the legacy fixed-line telecom business, enabling focused investment and external capital attraction. The move follows SK Telecom's July 2026 disclosure that it was reviewing strategic options for its AI data center business and the concurrent KRW 3.08 trillion sale of a 37% stake in SK Horizon to KKR and IMM Consortium — together these transactions position SK Horizon as a standalone, externally funded AI infrastructure platform while SK Telecom retains control.
How filings like this one have moved
In the 30 days to Sep 14, 2026, 35.8% of the 1045 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.43%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, SKM was trading at $39.64 on NYSE in the Technology sector, with a market capitalization of approximately $15B. The 52-week trading range was $19.66 to $47.18. This filing was assessed with neutral market sentiment and an importance score of 8 out of 10.