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Photo = Yonhap news |
[Alpha Biz= Kim Jisun] SK Enmove’s planned initial public offering (IPO) has been suspended as SK Innovation decided to repurchase the entire stake previously sold to an external investor.
On the 25th, SK Innovation announced that it will acquire the remaining 30% stake in SK Enmove, its subsidiary specializing in lubricants, thereby making it a wholly owned subsidiary.
The company plans to acquire 12 million shares held by financial investor Eco Solution Holdings at a price of KRW 71,605 per share through an off-market transaction scheduled for July 2. The total acquisition amount is approximately KRW 859.3 billion.
To finance the purchase, SK Innovation will issue exchangeable bonds worth KRW 376.7 billion to Eco Solution Holdings. These bonds will be exchangeable for 3,404,104 treasury shares held by SK Innovation, representing 2.25% of the company.
In 2021, SK Innovation had sold a 40% stake in SK Enmove to outside investors. A call option was attached to 10% of that stake, allowing SK Innovation to repurchase it if certain return thresholds were met. Following large dividend payouts, the company exercised this option last year.
Despite several attempts to go public, SK Enmove's IPO has been delayed due to valuation challenges, concerns over overlapping listings, and uncertainty surrounding potential amendments to Korea’s Commercial Act.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
