Hahn & Co. emerges as likely buyer for SK Siltron

SK Siltron's headquarters in Gumi, North Gyeongsang Province / Courtesy of SK Siltron

Korean private equity firm Hahn & Co. has emerged as a potential buyer of SK Siltron, as SK Group, the country’s second-largest conglomerate, seeks to divest its semiconductor wafer manufacturer, industry officials said Thursday.

If the deal goes through, Hahn & Co. will have invested in 10 SK Group affiliates, further solidifying its position as a key strategic partner in the group’s ongoing restructuring efforts.

According to sources in the investment banking industry, SK Corp., the holding company of SK Group, recently initiated talks with major private equity firms — including Hahn & Co. — to explore a potential sale of SK Siltron’s management rights.

The stake under consideration reportedly includes 51 percent directly held by SK Corp. and an additional 19.6 percent secured through a total return swap agreement, bringing the total to 70.6 percent.

The deal is expected to be valued at around 5 trillion won ($3.4 billion).

The SK Siltron deal is seen as part of the group’s ongoing efforts to restructure its business portfolio. As the conglomerate continues to offload its noncore assets to concentrate resources on key growth areas, the potential divestment aligns with its long-term strategic priorities.

Hahn & Co. has maintained a close business relationship with SK Group since 2018, when it acquired SK Corp.’s offline used car business for 220 billion won and launched K Car.

In the same year, the private equity firm also invested in SK D&D and SK Shipping.

Since then, Hahn & Co. has continued to build trust with the group through a series of acquisitions, including SK Chemicals’ bioenergy division and SK Enpulse’s fine ceramics business.

Most recently, the firm acquired an 85 percent stake in SK Specialty — a global leader in specialty gases used in manufacturing semiconductors and display panels. The deal was finalized on March 31 at a price of 2.6 trillion won.

SK affiliates acquired and managed by Hahn & Co. are generally regarded as having demonstrated strong financial performance.

For example, K Car’s annual revenue has shown a consistent upward trend over the past five years, rising from 1.3 trillion won in 2020 to 2.3 trillion won in 2024.

“A conglomerate looks at more than just price when choosing a merger and acquisition partner. Considerations such as job security for employees and possible collaboration with other affiliates are also important,” an official from the investment banking sector said. “Hahn & Co. and SK Group seem to have developed a strong relationship of trust through a series of previous deals.”

Commenting on the matter, an SK Group official said, “We are currently evaluating a range of strategic options, including a potential stake sale in SK Siltron, but no definitive decisions have been made at this point.”