Photo courtesy of Yonhap News

 

 

[Alpha Biz= Paul Lee] SK Group will repurchase shares in SK ecoplant held by financial investors (FIs) for a total of KRW 1.05 trillion, as the company faces difficulties completing an initial public offering (IPO) within the agreed timeframe.

SK Inc. said on the 28th that its board approved an investment of approximately KRW 398.5 billion to acquire 2.66 million common shares and 320,000 convertible preferred shares (CPS) from FIs. SK Inc., currently the largest shareholder with a 66.7% stake, will see its ownership rise to 71.2% including CPS.

Separately, SK ecoplant announced it will repurchase KRW 650 billion worth of CPS and has initiated procedures to convene an extraordinary shareholders’ meeting. The buyback is estimated to reflect an annual return of 7.5% for investors.

SK ecoplant had raised a total of KRW 800 billion in July 2022 from FIs, including KRW 200 billion in existing shares and KRW 600 billion in CPS, with a shareholder agreement requiring an IPO by July 21, 2026. However, the timeline has been disrupted due to regulatory challenges, including fines related to accounting violations last year and the government’s planned implementation of overlapping listing regulations in July.

SK Inc. said the decision reflects expectations that improving performance at SK ecoplant—supported by the semiconductor supercycle—will enhance its corporate value. The company posted KRW 12.19 trillion in revenue and KRW 315.9 billion in operating profit last year, both up 40% year-on-year, driven by a shift toward AI infrastructure and contributions from semiconductor materials subsidiaries such as SK Trichem.

 

 

 

 

AlphaBIZ Paul Lee(hoondork1977@alphabiz.co.kr)