SK Inno Holds Extraordinary General Meeting and Decides to Spin Off Battery Division

Opposition to National Pension Expressed
SK Innovation Prepares Shareholder Return Policy
Agenda Expected to Pass Like LG Chem Spinoff

SK REITs (SK Entrusted Management Real Estate Investment Company) will enter the KOSPI market next month. On the 18th, the SK Group headquarters, SK Seorin Building in Jongno-gu. Photo by Moon Honam munonam@

[Asia Economy Reporter Yoonju Hwang] SK Innovation will decide on the spin-off of its battery corporation on the 16th. Although the National Pension Service expressed opposition, the prevailing view is that the proposal will pass without difficulty.

SK Innovation will hold an extraordinary general meeting of shareholders at 10 a.m. at the Seorin Building in Seoul to approve the physical division of its battery and oil development business units.

If the spin-off agenda passes, the newly established companies, tentatively named 'SK Battery Co., Ltd.' and 'SK E&P Co., Ltd.', will officially launch on October 1.

According to disclosures, as of the end of June, SK Innovation’s shares are held 33.40% by SK Inc., 27.48% by minority shareholders, and 8.05% by the National Pension Service. Foreign and institutional investors are reported to hold more than 26%. Although the National Pension Service announced its intention to exercise voting rights against the proposal the day before, the agenda can pass solely with the shares held by the largest shareholder, SK Inc., which holds over one-third of the total issued shares.

It is also expected that more than two-thirds of the shareholders attending the general meeting will agree smoothly. This is because the largest shareholder SK Inc. and many foreign and institutional investors support the proposal. Most voting advisory firms, including ISS, Korea Corporate Governance Service, Daishin Governance Research Institute, and Glass Lewis, are in favor of the spin-off.

While the battery business spin-off is expected to pass without issue, SK Innovation is also reportedly preparing a shareholder return policy. At the general meeting, SK Innovation will propose an amendment to the articles of incorporation stating that "dividends of profits may be paid in cash, stock, or other property." This opens the possibility for SK Innovation shareholders to receive shares of the newly established battery corporation.

The inaugural CEO of 'SK Battery Co., Ltd.' (tentative) is expected to be Ji Dong-seop, the head of the battery business division.

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