[Market Focus] SK D&D Hits Record High on Hahn & Company's Tender Offer and Delisting Plan

SK D&D is showing strong performance in early trading.

As of 9:05 a.m. on October 1, SK D&D was trading at 12,710 won, up 13.58% (1,520 won) from the previous day. During the session, it soared to 12,740 won, setting a new 52-week high. The news that the company's shares would be sold to a private equity fund appears to have stimulated investor sentiment.

On this day, SK Discovery announced that its board of directors had decided to sell all of its 5,821,751 shares (31.3%) in its subsidiary SK D&D to the private equity firm Hahn & Company for 74.2 billion won. SK D&D is a real estate development and management company under SK Discovery. Until now, SK Discovery and Hahn & Company have each held a 31.3% stake, operating the company under a joint management system.

With this share sale, SK Discovery plans to boldly divest its non-core affiliate responsible for real estate development and management, and focus its capabilities on green materials, energy, and bio, which are the group's growth engines. Hahn & Company, which has become the largest single shareholder, will acquire all remaining listed shares of SK D&D through a public tender offer and proceed with delisting. This is based on the judgment that real estate development, which must disclose results on a quarterly basis, is not suitable for a listed company with participation from general investors.

The tender offer period runs from today until the 29th. Hahn & Company has stated that it will purchase all shares tendered in the offer and pay the proceeds in cash. The purchase price per share is 12,750 won, the same as the price at which SK Discovery's stake was acquired.

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