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Uber to invest in S.Korea SK Telecom's mobility business

Credit: REUTERS/BRENDAN MCDERMID

Uber Technologies said on Friday that it will invest over $150 million into a joint venture and partnership with South Korea's SK Telecom Co Ltd, which is proposing to split off its mobility business.

Adds details about SK Telecom's proposed mobility business split-off, joint venture with Uber

SEOUL, Oct 16 (Reuters) - Uber Technologies UBER.N said on Friday that it will invest over $150 million into a joint venture and partnership with South Korea's SK Telecom Co Ltd 017670.KS, which is proposing to split off its mobility business.

SK Telecom planned to split off its mobility business unit and launch T Map Mobility, while Uber would invest over $100 million in a joint venture with T Map Mobility and about $50 million in T Map Mobility, the companies said in a joint statement.

Shareholders would vote on the plan at a general meeting on Nov. 26, and once approved, it would take effect on Dec. 29.

SKT expects T Map Mobility, valued at about 1 trillion won ($873.3 million), to grow into a company worth 4.5 trillion won by 2025, the companies said.

Uber will own 51% of the joint venture, while SK Telecom will hold the remaining 49%.

($1 = 1,145.0400 won)

(Reporting by Joyce Lee and Hyunjoo Jin; Editing by Stephen Coates)

((jungyoon.lee@tr.com; +82 2 6936 1467;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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