SK Telecom, South Korea's top mobile carrier, ill buy a network business for 892.9 billion won ($719.5 million) from sister firm SK Networks.
The acquisition will save SK Telecom about 300 billion won in line leasing costs a year, SK Telecom said in a statement.
SK Telecom also said it would buy new shares in SK Broadband, a high-speed Internet provider controlled by SK Telecom. SK Broadband, 43.4% owned by SK Telecom, is offering new shares, expected to be worth 300 billion won, to secure funds for long-term growth.
"There had been expectations that the newly acquired network assets would be invested in SK Broadband. Share prices are falling due to disappointment," said Daniel Jin, an analyst at Goodmorning Shinhan Securities.
In 2008, SK Networks had about 500 billion won in sales from its network business, mostly line leasing, analysts said.
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