As part of a large-scale business restructuring effort, SK Group has been pushing for a merger between SK Innovation, the energy holding company, and SK E&S, an unlisted affiliate.
Under the plan passed on Wednesday, SK Innovation and SK E&S will merge at a ratio of 1:1.19. This ratio differs from the market's anticipated 1:2 ratio.
Both companies are scheduled to hold shareholders’ meetings on August 27 to vote on the plan.
Industry observers expect the new entity will be Korea’s eighth-largest conglomerate.
SK E&S is an energy subsidiary involved in businesses such as liquefied natural gas (LNG), hydrogen, and renewable energy. In 2023, it recorded 11.2 trillion won in revenue and 1.3 trillion won in operating profit.
SK Innovation is also pursuing a plan to enhance the competitiveness of SK On by merging it with SK Trading International, a crude oil and petroleum product trading company, and SK Enterm, which operates SK Energy's tank terminal business.
The boards of the three companies also approved the merger plan on Wednesday.
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