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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] South Korean companies, including Doosan Enerbility, are selling stakes in small modular reactor (SMR) firms as rising valuations—driven by surging electricity demand from artificial intelligence (AI)—create opportunities for profit-taking.
Doosan Enerbility said on March 23 that it sold 1.95 million shares of U.S.-based SMR developer NuScale Power last year, representing half of its 3.9 million-share holding. Following the sale, its ownership stake stands at 0.69%. The transaction, completed late last year, is estimated to have generated several tens of billions of won in gains.
Doosan Enerbility had invested a total of $104 million in NuScale Power through two rounds in 2019 and 2021, securing not only equity but also rights to supply key reactor components. NuScale’s share price surged from around $10 in 2021 to as high as $57 in October last year, before retreating to the $10–$20 range more recently.
The company said the divestment was aimed at securing funds for further investments in SMR-related businesses.
Other Korean firms are also taking similar steps. Samsung C&T sold 3.6 million shares out of its 5.18 million-share holding in NuScale Power in the fourth quarter of last year, citing the need to secure funds while maintaining strategic business cooperation.
Meanwhile, SK Innovation transferred part of its stake in U.S. SMR developer TerraPower to Korea Hydro & Nuclear Power in January.
Industry observers say the moves reflect a broader trend of portfolio rebalancing, as companies seek to capitalize on rising SMR valuations while reallocating capital to future growth areas.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
