A normal assembly of shareholders relating to the merger of SK Innovation and its affiliate SK E&S takes place on the SK headquarters in Jongno District, Seoul, Aug. 27. Yonhap
Shareholders of SK Innovation and its vitality affiliate SK E&S on Tuesday overwhelmingly permitted a proposed merger of the 2 firms that will create the biggest non-public vitality firm within the Asia-Pacific area.
The merged entity of SK Innovation and SK E&S shall be formally launched on Nov. 1 with mixed property of 100 trillion received ($75.12 billion) and gross sales of 88 trillion received.
“The formation of the brand new entity will create the biggest non-public vitality firm within the Asia-Pacific area,” SK Innovation mentioned in a press release, including that the proposed merger was ratified with an 85.75 % approval price from the attending shareholders.
The proposed merger is a part of SK Group’s restructuring efforts to streamline its associates and help its loss-making battery unit, SK On, analysts mentioned.
Park Sang-kyu, chief government of SK Innovation, mentioned, “We’ll do our utmost to make sure that this merger, which is able to function a basis for the corporate’s long-term stability and progress, is carried out easily.”
“Moreover, we’ll actively overview and implement numerous shareholder-friendly insurance policies following the completion of the merger,” Park mentioned.
The merger ratio of SK Innovation and SK E&S was set at 1 to 1.1917417.
The Nationwide Pension Fund, a significant shareholder of SK Innovation, voted in opposition to the proposed merger. The fund is the second-largest shareholder of SK Innovation, with a 6.2 % stake. SK Innovation’s largest shareholder is SK Inc. with a 36 % stake.
Nevertheless, SK Innovation mentioned 95 % of its international shareholders, together with proxy advisory companies ISS and Glass Lewis, voted for the proposed merger.
SK Innovation mentioned the proposed merger is anticipated to “improve the competitiveness of the vitality portfolio by integrating SK Innovation’s oil and battery companies with SK E&S’ liquefied pure gasoline (LNG) and renewable vitality companies.”
Shares of SK Innovation rose 2.72 % to 109,400 received at one level in afternoon buying and selling. (Yonhap)
