SK Innovation Issues 600 Billion Won Convertible Bonds to Acquire SK On Shares

SK Innovation has decided to issue convertible bonds (CB) worth 600 billion won to acquire shares of SK On held by financial investors (FIs).

A merged corporation of SK Innovation and SK E&S, with assets totaling 105 trillion won (as of the first half of this year), has officially launched. After announcing the merger in July and completing preparation procedures over the past three months, the largest private energy company in the Asia-Pacific region has been established. The photo shows the SK Seorin Building in Jongno-gu, Seoul, where SK Innovation's headquarters is located. Photo by Kang Jinhyung

On October 22, SK Innovation announced through a disclosure that it held an extraordinary board meeting and resolved to issue bearer, unsecured, privately placed convertible bonds for the purpose of acquiring securities of another company. The issuance amounts to 600 billion won, with a maturity of two years until October 31, 2027.

The funds raised will be used to acquire SK On shares currently held by financial investors.

The Korea Investment Partners Private Equity consortium will participate in this issuance. These investors have highly evaluated the growth potential of SK Innovation and SK On, and have decided to reinvest half of their previous investment of 1.2 trillion won into the convertible bonds. The convertible bonds will be issued with zero interest.

In July, SK Innovation merged SK On and SK Enmove and decided to acquire the entire amount of SK On financial investor investments, totaling 3.588 trillion won.

Through this convertible bond issuance and the acquisition of SK On shares, the equity settlement with financial investors is expected to be finalized.

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