SK Innovation, the group’s energy holding company, announced that 85.76 percent of attending shareholders voted in favor of the merger at an extraordinary general meeting.
SK E&S, a highly profitable and unlisted affiliate, also held a shareholders' meeting and approved the proposal.
The merged company will be launched on Nov. 1, with assets totaling 100 trillion won ($75.2 billion) and annual revenue of 88 trillion won.
The merger ratio between SK Innovation and SK E&S was set at 1 to 1.19.
As part of a group-wide restructuring, the merger is seen as a strategy to turn around SK Innovation’s struggling battery unit, SK On, by leveraging the strong cash flow of SK E&S. SK On is 100 percent owned by SK Innovation.
"We will do our utmost to ensure that this merger, which will serve as a foundation for the company’s long-term stability and growth, proceeds smoothly," SK Innovation CEO Park Sang-kyu, said.
SK E&S is an energy subsidiary engaged in liquefied natural gas (LNG), hydrogen and renewable energy. In 2023, the company reported revenues of 11.2 trillion won and an operating profit of 1.3 trillion won.
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