SK Group's holding company, SK Inc., is moving to fully acquire SK Eco Plant instead of pursuing an initial public offering (IPO). This strategy aims to strengthen its competitiveness in semiconductor and artificial intelligence (AI) sectors while addressing concerns over dual listings and enhancing the holding company's value.
On November 4, SK Inc. announced during a board meeting its decision to initiate a tender offer for shares of its unlisted subsidiary, SK Eco Plant.
The tender offer price is set at 88,000 won per share, which is 53% higher than the average trading price of approximately 57,500 won over the past month on the K-OTC market. An external accounting firm assessed the purchase price based on asset value and future revenue potential.
The tender offer period will run from November 5 to November 24. The target is approximately 16.43 million shares, representing about 25% of SK Eco Plant's total issued shares, with a total investment of around 1.4458 trillion won if all shares are acquired. Payment will be made in cash, with NH Investment & Securities serving as the lead manager.
This decision is seen as part of SK Eco Plant's restructuring efforts, which also includes adjustments to its governance structure. SK Eco Plant previously attracted external investment during its expansion into environmental and energy sectors, and an IPO had been considered a primary exit strategy for financial investors.
However, by shifting to a direct acquisition of shares, SK Inc. can provide existing investors with an opportunity to recoup their investments without going public. This approach also aims to avoid the discount in the holding company's value associated with a subsidiary's IPO and to concentrate SK Eco Plant's growth achievements within the holding company.
Earlier, in April, SK Inc. invested approximately 400 billion won to acquire shares held by financial investors, raising its ownership stake to about 74% based on voting rights and 71.2% based on the number of issued shares. Following the tender offer, SK Inc. plans to secure 100% ownership through a cash-based comprehensive stock exchange process.
SK Eco Plant has already made significant progress in its business restructuring. Since 2024, it has been transitioning from a construction and environmental focus to a semiconductor and AI infrastructure model.
In 2024, SK Eco Plant incorporated SK Air Plus, an industrial gas company, and Essencore, a semiconductor module firm, as subsidiaries. Last year, it added four semiconductor material companies: SK Trichem, SK Rezonac, SK Materials JNC, and SK Materials Performance.
This restructuring has led to growth in both size and performance. In the first half of this year, SK Eco Plant reported consolidated revenues of 10.504 trillion won and an operating profit of 1.465 trillion won.
SK Inc. expects that the full acquisition will enhance collaboration among affiliates within the semiconductor and AI value chain and improve decision-making efficiency.
An SK Inc. official stated, "The tender offer reflects a premium over the K-OTC market price, providing minority shareholders with an opportunity to recoup their investments while alleviating concerns over SK Eco Plant's dual listing and enhancing trust in the capital markets. We aim to leverage the full acquisition of SK Eco Plant to boost competitiveness in the semiconductor and AI value chain and translate that success into increased shareholder value for SK Inc."
* This article has been translated by AI.
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