SK Gas Sells Stake in Eurasia Undersea Tunnel... "Focusing on New Businesses Like LNG"

Securing 140 Billion KRW Funding Through Sale and Purchase Agreement with Qatar Investment Authority

Exterior view of the Eurasia Tunnel. (Photo by SK Gas)

[Asia Economy Reporter Moon Chaeseok] SK Gas announced on the 16th that it has decided to sell its stake in the Eurasia Tunnel (ATAS) in Turkey. This is to maintain financial soundness through asset securitization and to secure funds for new business investments.

ATAS is the world's first double-deck tunnel exclusively for automobiles, spanning 5.4 km across the Bosporus Strait in Istanbul. It has been in operation since December 2016. SK Gas invested a total of 52 million USD in 'SK Holdco,' a special purpose company established for the ATAS investment, starting in 2015.

The sales contract will proceed with a subsidiary of Qatar Investment Authority (QIA), Qatar's sovereign wealth fund, purchasing all preferred shares of SK Holdco. Through the stake sale, SK Gas will secure approximately 140 billion KRW in funds. Preparations for the sale, including the Stock Purchase Agreement (SPA), are in the final stages. The company explained that all procedures are expected to be completed within one year following the board resolution on the sale made on this day.

An SK Gas official stated, "The sale of the Eurasia Tunnel stake was done to improve the financial structure through asset securitization while simultaneously securing funds for new business investments," adding, "The proceeds from the sale will be reinvested to establish a foundation for new businesses such as hydrogen, liquefied natural gas (LNG) terminals, and gas combined cycle power generation, which are part of our future growth strategy."

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