SK Ecoplant Brings SK Eco Engineering Back as a Subsidiary After Four Years

On February 13, SK Ecoplant announced that it has decided to purchase in full the 5.65 million redeemable convertible preferred shares (RCPS), representing a 42.8% stake, issued by its subsidiary SK Eco Engineering. The purchase price is approximately 362 billion won.

SK Ecoplant will acquire the RCPS from Eco Energy Holdings, a special purpose company established by Mirae Asset Securities and Eum Private Equity for the purpose of investing in SK Eco Engineering.

With this RCPS purchase, SK Ecoplant will secure a 100% stake in SK Eco Engineering, including its existing 7.55 million common shares (57.2%). SK Eco Engineering will be reorganized as a wholly owned subsidiary of SK Ecoplant roughly four years after its physical spin-off in 2022.

SK Ecoplant stated that this equity acquisition is a measure to simplify SK Eco Engineering's shareholding structure and to enhance its financial stability. By redeeming ahead of schedule the RCPS of SK Eco Engineering, which were originally due to mature in April next year, the company also expects to reduce potential financial costs such as dividends and interest. The company plans to minimize financial uncertainty and secure stability in its medium- to long-term business operations.

Going forward, SK Ecoplant plans to strengthen business linkages with SK Eco Engineering and to advance integrated engineering capabilities centered on artificial intelligence (AI) infrastructure. The company aims to enhance its fundamental business competitiveness by expanding synergies across design, construction, and overall project management.

A representative of SK Ecoplant said, "This RCPS purchase is a decision to streamline our financial structure and focus on our core businesses," adding, "We will continue to strengthen our capabilities for stable business execution in the AI infrastructure sector."

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