SK On to Raise 1 Trillion KRW Through Paid-in Capital Increase... SK Inno Expands 'Enmove Stake' to 70%

SK Innovation announced on the 2nd that its subsidiary SK On has decided to conduct a third-party allotment capital increase worth approximately 1 trillion KRW. The number of new shares to be issued is 18,031,337, with an issue price of 55,459 KRW per share.

[Image source=Reuters Yonhap News]

SK Innovation explained that this is "to achieve management objectives such as improving the financial structure." SK On will raise about 1 trillion KRW through a price return swap (PRS) method by issuing new shares. PRS is a financial technique widely used by many domestic companies for capital raising, allowing them to recognize profits if the stock price rises in the future.

On the same day, SK Innovation announced that it will acquire 4 million shares of SK Enmove held by Ecosolution Holdings, a subsidiary of IMM, for 142.7 billion KRW. SK Innovation's stake in SK Enmove increased from 60% to 70%. Ecosolution Holdings is a special purpose company (SPC) established by IMM Credit Solutions (ICS), a credit division subsidiary of IMM Private Equity (PE), for investment in SK Enmove.

Previously, in April 2021, ICS acquired 16 million shares (40%) of SK Enmove for 1.1195 trillion KRW. SK Innovation included a call option clause allowing it to repurchase 10% of the shares if certain conditions are met upon selling the stake.

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