SK Networks Transfers Gas Station Business to Koramco and Hyundai Oilbank

1.3 Trillion Won Scale... Completion of June Project Transfer

[Asia Economy Reporter Kim Ji-hee] SK Networks is selling its directly operated gas station business to accelerate investment in future core growth businesses.

On the 4th, SK Networks announced that it has signed contracts and obtained board approval to transfer real estate related to petroleum product retail sales to Koramco for 1.3321 trillion KRW, and assets and personnel related to gas station operations to Hyundai Oilbank. The purchase price is borne by Koramco Asset Trust with 300.1 billion KRW, Koramco Energy Plus Trust Management Real Estate Investment Company with 965.2 billion KRW, and Hyundai Oilbank with 66.8 billion KRW. SK Networks has been negotiating after signing a memorandum of understanding (MOU) with the ‘Koramco-Hyundai Oilbank’ consortium at the end of last year.

SK Networks plans to complete the business transfer by June 1 after going through related procedures such as the shareholders' meeting next month. Through this, it is expected to speed up the growth strategy by focusing on home care and mobility-centered selection and concentration.

An SK Networks official said, “According to the contract, the land, buildings, and structures of 199 owned gas stations will be transferred to Koramco Asset Trust and Koramco Energy Plus Trust Management Real Estate Investment Company, and the lease rights for 103 leased gas stations and tangible assets related to gas station operations will be transferred to Hyundai Oilbank. We will do our best to maintain operations and support business transfer during the remaining period to ensure the successful completion of the transaction, and focus on effectively utilizing the purchase price exceeding 1 trillion KRW to enhance corporate value.”

SK Networks plans to use the purchase price to repay borrowings to secure financial stability and strengthen investments in consumer goods businesses such as SK Magic and SK Rent-a-Car, which account for more than half of the company's profits and are continuously growing. In addition, efforts to secure additional growth engines in line with strategic directions will continue.

Meanwhile, SK Networks decided on the same day to repurchase its own shares worth 100 billion KRW to enhance shareholder value in a market weakened by the recent global economic recession and the novel coronavirus disease (COVID-19). An SK Networks official said, “With the financial soundness and future direction strengthened by the sale of the gas station business, this share repurchase is expected to play a positive role not only in stabilizing the stock price but also in terms of future corporate value.”

This content was produced with the assistance of AI translation services.