The deal comes as AI-driven memory demand fuels efforts to secure chip supplies.
- The transaction is part of Chey Tae-won’s plan to raise 944 billion won through share sales.
- Dell’s investment comes as technology companies seek to secure memory-chip supplies for AI infrastructure.
- U.S. memory stocks remained under pressure amid concerns over Chinese competition and the sustainability of AI spending.
SK Group Chairman Chey Tae-won agreed to sell a 1.34% stake in the South Korean conglomerate’s holding company to an investment fund affiliated with Dell Technologies (DELL) founder Michael Dell for $406 million, Reuters reported, citing a regulatory filing on Wednesday.
The transaction is part of Chey’s plan to raise 944 billion won ($704 million) through share sales to fund a divorce settlement with his former wife.
DFO Public Investments, a Delaware-based fund affiliated with DFO Management, Michael Dell’s family investment office, will purchase 972,493 shares of SK Inc., according to the report.
Chey’s Stock Sale Plan
Earlier this month, SK Inc. disclosed that Chey had agreed to sell 1.65 million shares. Of those shares, 681,431, or 0.94% of the company, will be sold to Korea Investment & Securities for 400 billion won.
SK previously identified the buyer of the remaining shares only as a strategic investor, citing the company’s business competitiveness and medium- to long-term growth prospects as reasons for the investment.
SK Inc. is the holding company of SK Group and its largest shareholder in SK Hynix, the group’s memory-chip subsidiary, which makes it a parent-company relationship.
Dell’s Ties With SK Hynix
The investment comes as technology companies seek to secure supplies of memory chips critical to the AI infrastructure buildout.
Dell Technologies, a major supplier of AI servers and data center infrastructure, has business ties with SK Hynix. Reuters reported in May that global technology companies had approached SK Hynix with proposals to invest in dedicated memory chip production lines and help finance expensive manufacturing equipment as they sought to secure supplies amid surging AI demand.
US Memory Selloff
U.S. memory stocks extended their selloff as concerns over intensifying Chinese competition and the sustainability of AI spending rattled investor sentiment. Micron (MU) declined 0.2% in Wednesday’s premarket session, while SanDisk (SNDK) declined 1.5%.
China’s CXMT reported progress on a new memory-chip architecture, raising concerns about future competition for U.S. memory makers, while comments from Broadcom CEO Hock Tan questioning investors’ understanding of AI investments added to caution.
The iShares Semiconductor ETF (SOXX) fell for a sixth straight session on Tuesday. It was up 0.2% in premarket trading.
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