Photo = Yonhap news

 

[Alpha Biz= Reporter Kim Jisun] KT Group has decided to sell its financial and security solutions subsidiary, Initech.

According to the IT industry on the 26th, KT Group recently selected a preferred bidder for the sale of Initech, with plans to finalize the transaction by the end of the year.

KT intends to sell a 30% stake in Initech held by its subsidiary, KT DS, along with a 27% stake owned by another affiliate, HNC Network. Industry experts estimate the sale, including a management control premium, could amount to as much as 60 billion KRW. Initech, listed on the KOSDAQ, currently has a market capitalization of 75 billion KRW.

The sale is part of KT's efforts to streamline operations and improve management efficiency through restructuring. It is reported that the synergy expected after KT DS acquired Initech in 2021 has not materialized, with overlapping operations leading to inefficiencies. Initech has continued to record losses since the acquisition, with deficits widening from 200 million KRW in 2021 to 3.5 billion KRW last year.

 

 

 

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