SK Telecom, South Korea’s leading mobile carrier, announced Monday that it has decided to sell its 3.8 percent stake in China Unicom back to the Chinese mobile carrier.

In July 2006, SK Telecom purchased convertible bonds worth US$1 billion from China Unicom, a listed company on the Hong Kong Stock Exchange. Later in August 2007, the company converted China Unicom bonds into shares.

SK Telecom estimated that the total proceeds of the stake sale will amount to 1.5 trillion won ($1.26 billion). The sale of shares is expected to be completed in mid-November after gaining approval from independent shareholders of China Unicom, SK Telecom said.

“This decision falls in line with our vision of becoming a global ICT (information and communications technology) leader, under which we are making efforts to expand our areas of interest to convergence business that includes distribution, Internet and finance,” the South Korean mobile operator said in a statement.

The company added the decision to sell China Unicom shares is part of a broader move to adjust its business portfolio to better reflect changes in overall growth strategy.

SK Telecom said it is planning to use the proceeds from the sale of shares to secure financial soundness and to acquire research and development capability to strengthen its competitiveness.

The company emphasized it will continue to maintain its partnership with China Unicom, adding that it plans to increase its existing business presence in China.

YonhapNewsAgency

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