SK Telecom (SKT), an affiliate of SK Group, is making a $200 million preferred equity investment in SMART Global Holdings (SGH), a designer and developer of high-performance, high-availability enterprise solutions.
The investment will give SKT 200,000 preferred shares of SGH, convertible into ordinary shares of SGH at a conversion price of $32.81 per preferred share, subject to adjustment upon the occurrence of certain events. The initial conversion rate is based on a 30 percent premium to the volume-weighted average closing price of SGH ordinary shares during the 15-day period ending July 12. SGH also has certain redemption rights with respect to the preferred shares.
SGH plans to use the capital from the investment to enhance its capabilities and add to the company’s financial flexibility as SGH further expands the scope and scale of its Penguin Solutions branded end-to-end AI factory offerings. Penguin Solutions develops and deploys innovative AI-driven technologi
