SK Siltron’s factory. SK Siltron
Doosan (000150) Group has finalized its acquisition of SK Siltron seven months after being named the preferred bidder. Doosan has succeeded in building the semiconductor value chain it had long pursued, while SK (034730) Group has secured funds to reshape its business portfolio.
According to the investment banking (IB) industry on the 31st, Doosan agreed to purchase a 70.6% stake in Siltron from SK for approximately 2.3 trillion won. The enterprise value (EV) is estimated at around the mid-5 trillion won range. The two companies each held board meetings that day to approve the signing of the share purchase agreement (SPA). SK Group Chairman Chey Tae-won’s personal 29.4% stake has been excluded from this transaction for now.
Siltron, a company specializing in semiconductor wafers, ranks third in the world in market share based on 12-inch wafers. Doosan Group had previously acquired Doosan Tesna and Enzion in succession, and by taking on Siltron this time, it has completed the entire semiconductor value chain, from wafers as a front-end process material, to copper clad laminate (CCL) as a substrate material, to back-end testing.
The two sides prepared an “excess profit-sharing earn-out” as a supplementary mechanism. Under the structure, SK will share part of the profits if Siltron’s performance exceeds an agreed threshold. Separately, as Chairman Chey’s stake remains, the total value of the stake transactions between the two sides could increase further down the road.