SK Siltron is set to come under full ownership of SK Group as its chairman Chey Tae-won became eligible to buy the remaining 29.4 percent in SK Siltron from creditors to complete the buyout of the country’s only silicon wafer producer enjoying a boom from expansion at the world’s two chipmakers Samsung Electronics and SK Hynix.

According to multiple sources from the financial investment industry and the conglomerate circle on Thursday, a group of creditor lenders including Woori Bank signed an agreement with Samsung Securities Co. and Korea Investment & Securities Co. to hand over 29.4 percent stake ownership in SK Siltron for 253.5 billion won ($225.4 million). The per share price is 12,871 won - the same price of what SK Group paid recently to buy SK Siltron shares from KTB PE. The latest agreement was made on the request of SK Group Chairman Chey, who is eligible to buy the shares from the brokerage firms in the future by exercising call option. If not, the brokerage firms can dispose the shares.

Similar deal was made over a 19.6 percent stake in May after SK Group took over a controlling 51 percent stake in LG Siltron in January for 620 billion won.

Chey earlier said he would use his personal wealth to fully-own SK Siltron to maximize synergy with chipmaking SK Hynix.

Meanwhile, Samsung Securities and Korea Investment & Securities plan to sign an agreement with a special purpose company to hand over the stake acquired from creditors. The agreement will be in the form of a total return swap (TRS) in which a brokerage firm sets up a special purpose company on behalf of the actual investor to buy shares and receive commissions.

A TRS agreement is signed when the actual investor does not have sufficient funds to buy stocks. It is considered a financial product that allows brokerage firms to earn stable profit from commissions without being exposed to risks such as from heavy fluctuation in stock price.

By Kang Doo-soon and Han Woo-ram

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