SK Eteronics reached its upper trading limit following news of a merger in the renewable energy sector involving SK Group and global private equity firm KKR.
According to the Korea Exchange, as of 11:23 a.m. on June 10, SK Eteronics shares rose by 10,200 won (29.87%) to 44,350 won compared to the previous trading day.
The surge in investor sentiment is attributed to reports that SK Group and KKR have signed a business transfer agreement aimed at restructuring their renewable energy operations.
As reported by the Korea Economic Daily, SK Group and KKR are consolidating SK Innovation's E&S renewable energy business, SK Eco Plant's renewable energy operations, and a 30.98% stake in SK Eteronics held by SK Discovery. The total transaction is estimated to be worth around 1.8 trillion won.
It is understood that the main contract for the SK Eteronics stake was signed last month. Following the acquisition, KKR plans to establish a joint venture with SK Group to jointly develop the integrated renewable energy business.
Currently, SK Eteronics operates 36 solar power plants, six wind farms, five fuel cell facilities, and 28 energy storage systems (ESS) in South Korea. SK Innovation E&S manages 3.5 gigawatts (GW) of solar power capacity and both onshore and offshore wind projects, while SK Eco Plant is developing AI data center integration solutions based on eco-friendly energy technologies.
Market expectations are high that this transaction will unify the previously fragmented renewable energy businesses within SK Group into a single platform. The combination of KKR's financial strength and SK Group's operational expertise is anticipated to accelerate business expansion. Additionally, SK Group affiliates are expected to improve their financial structures through asset sales.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.