UPDATE 1-SK Telecom aims to sell stake in affiliate via IPO

* SK Tel, SK Networks aim to sell up to 45 pct in SK C&C

* SK C&C IPO application to be submitted early next month

SEOUL, Sept 21 (Reuters) - South Korea's SK Telecom (017670.KS) and its affiliate SK Networks (001740.KS) are aiming to sell most of their holdings in sister company SK C&C through a November initial public offering, officials said on Monday.

SK C&C was among a number of Asian companies that delayed their IPOs because of last year's severe downturn in global equities, with its IPO valued at up to 1.2 trillion won ($996 million) at the time.

Now with stock markets on a roll amid signs of a global economic recovery, Asian companies are returning to the market.

SK C&C, the technology outsourcing arm of SK Group, is preparing for an IPO of up to a 45 percent stake in the company to help the two sister companies dispose of, or reduce their stakes in SK C&C, an official of SK C&C told Reuters by telephone.

"Both SK Telecom and SK Networks are planning to cash in on their shareholdings via an IPO. There will be no fresh shares on offer," the official said, asking not to be named before the board of trading company SK Networks approved the plan.

"The IPO is for SK Group to end a cross-holding structure and complete the transformation into a holding company format," he added.

SK C&C is the biggest shareholder in SK Holdings (003600.KS), an energy to construction holding company, with a 31.8 percent stake as of end-June,

Both SK Telecom and SK Networks have to dispose of their stakes in SK C&C by the end of June 2011 to meet regulations in relation to the holding company.

Lauren Kim, a spokeswoman for South Korea's top mobile carrier SK Telecom, said the company was planning to sell off its stake in SK C&C through the public offering, for which a book-building process was expected around end-October.

Kang Chung-sik, a PR manager for SK Group, said the IPO was expected to make a precise assessment of the company's valuations. The IPO application will be submitted to the domestic stock exchange early next month.

Woori Investment & Securities (005940.KS) will manage the offering. ($1=1205.4 Won) (Reporting by Kim Yeon-hee; Additional reporting by Rhee So-eui; Editing by Chris Lewis)