[Alpha Biz= Paul Lee] SK Innovation's subsidiary, SK Enmove, which is planning to go public, has been asked by the Korea Exchange (KRX) to prepare an investor protection plan, as the exchange found that such measures had not been established.
According to financial investment industry sources on Thursday, KRX requested that SK Enmove establish shareholder protection measures as part of their discussions for listing.
Concerns have been raised regarding the potential dilution of the parent company SK Innovation’s stake due to the listing of SK Enmove. SK Innovation currently holds a 70% stake in SK Enmove.
The KRX clarified that during the pre-listing consultation process, they simply informed SK Enmove of the necessary requirements as per regulations.
A KRX official explained, “During the consultation phase, it was confirmed that SK Enmove had not established shareholder protection plans, and we informed them that it was necessary according to the regulations.”
Previously, companies were required to submit a shareholder protection plan if they planned to list within five years of a demerger. However, earlier this year, the regulation was changed, requiring such plans to be submitted regardless of the timeline.
Meanwhile, as the government continues to push for the advancement of capital markets, criticism regarding the redundancy of listings has been growing. This is expected to lead to restrictions on companies making reckless attempts at listing or splitting subsidiaries for the purpose of listing.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
