SEOUL, Feb. 12 (Korea Bizwire) - CJ Hellovision Co., South Korea’s top operator of cable channels and Internet TV content, said Friday it plans to hold a shareholder meeting later this month to approve a proposed merger plan.
SK Telecom Co., the country’s top mobile operator, agreed to buy CJ Hellovision in November of last year, and plans to merge it with its wholly owned subsidiary SK Broadband Co. Industry watchers said the move will make SK Telecom a media giant that encompasses both mobile networks and media content.
According to its regulatory filing, CJ Hellovision will hold the shareholder meeting on Feb. 26.
The proposed takeover by SK Telecom has drawn harsh criticism from its rivals, KT Corp. and LG Uplus Corp., which suggested that the corporate deal will distort the market order, given SK Telecom’s dominant position in the mobile network industry.
South Korea’s regulatory bodies have not yet approved the plan. While the decision is expected to be made around the first quarter, it could be further delayed due to strong opposition from business rivals.
CJ O Shopping Co., which plans to sell its 30 percent stake in CJ Hellovision to SK Telecom, is likely to vote in favor of the deal. Those opposing the deal claim that CJ O Shopping’s vote can be translated as a proxy of SK Telecom.
The shareholders meeting can also be translated as a “follow-up measure” of the take-over plan, which is also restricted by the Ministry of Science, ICT, and Future Planning before its approval.’