January 17, 2006 — (WEB HOST INDUSTRY REVIEW) — Long-distance call and high-speed Internet provider Dacom (dacom.com) announced on Tuesday its board members have approved of the company’s plan to take over Web hosting and data center provider Korea Internet Data Center. Dacom is an affiliate of LG Group.
Separately, the board also approved the company’s plan to sell its 28.8 percent stake in customer support provider CIC Korea to Japanese company, TCI. The move will help Dacom improve the efficiency and competitiveness of its business operation, says a company official.
KIDC, which was spun off from Dacom in April 2000, has roughly 1,500 corporate clients and its annual operating profit is estimated at approximately $20 million. The merger, scheduled for March 1, 2006, should help improve Dacom’s financial structure.
Dacom is aiming at an operating profit of about $167 million for this year. Dacom is currently KIDC’s largest shareholder with a 90.5 percent stake.
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