April 11, 2025 /SemiMedia/ — SK Group is in advanced negotiations to sell a 70.6% stake in SK Siltron, South Korea’s sole semiconductor-grade silicon wafer manufacturer, to local private equity firm Hahn & Company, in a deal estimated at KRW 3 trillion ($2.2 billion).

The sale includes 51% directly held by SK Group and 19.6% held via a total return swap (TRS). If completed, the deal would mark Hahn & Company’s tenth acquisition from SK Group’s portfolio.

SK Siltron plays a critical role in the semiconductor supply chain, ranking third globally in wafer production behind Japan’s Shin-Etsu and Sumco. Since SK acquired the company from LG in 2017, SK Siltron’s revenue more than doubled to KRW 2.13 trillion in 2024, with EBITDA projected to reach KRW 640 billion.

The transaction is expected to significantly improve SK Group’s balance sheet, lowering its debt ratio from 86% to around 50%. Based on typical EBITDA multiples in the industry, SK Siltron is valued at approximately KRW 5 trillion. After repaying TRS-related debt and taxes, SK Group could realize at least KRW 2 trillion in net proceeds.

Hahn & Company has a history of acquiring SK assets, including its recent $2.7 billion acquisition of SK Specialty. Given SK Siltron’s strategic importance to South Korea’s semiconductor industry, a foreign acquisition is considered unlikely due to potential government scrutiny.