Michael Dell fund to invest $406 million in South Korea's SK Group
The investment from a fund linked to the Dell Technologies founder will help SK Group Chairman Chey Tae-won fund a divorce settlement.
An investment fund linked to Dell Technologies founder Michael Dell has agreed to buy a 1.34 per cent stake in SK Inc for 544 billion won ($406 million), according to a Reuters report cited by the Times of India.
The fund, DFO Public Investments, L.P., is affiliated with DFO Management, which is the family investment office of Michael Dell. The purchase involves 972,493 shares of the holding company.
SK Group Chairman Chey Tae-won is selling shares to raise 944 billion won to pay a divorce settlement to his former wife, Roh Soh-yeong. Roh is a director of Seoul's Art Center Nabi and the daughter of former South Korean president Roh Tae-woo.
The remaining portion of the 944 billion won ($711 million) share sale will be raised through a price return swap with Seoul brokerage Korea Investment & Securities. This transaction covers 681,431 shares, or 0.94 per cent of SK Inc, for approximately 400 billion won ($301 million).
Both transactions are scheduled to settle on November 2.
Dell Technologies, which supplies chips for data centre servers, has business ties with SK Hynix, the memory chipmaking unit of SK Group.