SK Corp. Considers Selling Stake in Chinese Watson, a Copper Foil Company... 1 Trillion KRW Market Profit

SK Inc. is reportedly considering the sale of its stake in the global copper foil company Watson.

SK Inc. has begun reviewing the sale of its 30% stake in Rondian Watson New Energy Tech (Rondian Watson). Rondian Watson is a special purpose company (SPC) that holds 100% of Watson, which is headquartered in China.

Watson is a company that produces copper foil and is a leader in global market share. Copper foil is a thin copper sheet that wraps the anode material of electric vehicle batteries. It serves as a pathway for electron movement and plays a key role in dissipating heat generated by the battery, making it one of the essential battery materials.

Last year, Watson recorded sales of 1.4697 trillion KRW and an EBITDA of 260.8 billion KRW. The company's valuation is known to be in the mid-4 trillion to 5 trillion KRW range. Considering only the value of SK Inc.'s 30% stake, it is estimated to be between 1.35 trillion and 1.5 trillion KRW. Given that SK Inc. invested a total of 380 billion KRW in two rounds in 2019 and 2020 to acquire the Watson stake, the potential capital gain from the sale is likely to exceed 1 trillion KRW. An SK representative declined to confirm the sale of the Watson stake.

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