Seoul: Doosan Group, South Korea's engineering and energy conglomerate, has been named the preferred bidder to acquire SK Siltron Co., SK Group said Wednesday. "We notified Doosan Co. that it was selected as the preferred bidder for the stock sale of SK Siltron," SK Inc., the group's holding company, stated in a regulatory filing. "Details will be determined after discussions with the preferred bidder, and we will announce related matters once they are finalized or within three months."

According to Yonhap News Agency, SK Siltron is South Korea's sole dedicated producer of semiconductor wafers, a key material used in chip manufacturing. The company ranks third globally in terms of market share for 12-inch wafers. Market analysts estimate SK Siltron's valuation at around 5 trillion won (US$3.38 billion).

The stake under negotiation reportedly amounts to 70.6 percent of SK Siltron and is expected to be worth more than 3 trillion won, though the final price may vary depending on deal terms. SK Group Chairman Chey Tae-won holds the remaining shares. The acquisition is expected to help Doosan strengthen its semiconductor materials and equipment portfolio as part of its future growth strategy. The group has recently acquired Doosan Tesna Inc., a chip testing company, and Engion, a chip packaging firm.

SK Group has put SK Siltron up for sale as part of an aggressive restructuring drive since last year aimed at streamlining its business portfolio, with a focus on improving financial soundness and securing long-term growth.