Seoul: SK Innovation Co., South Korea's largest oil refinery, announced its plan to fully incorporate its lubricant-making unit, SK Enmove Co., as a wholly owned subsidiary. This strategic move was approved during a board meeting, where the company agreed to acquire the remaining 30 percent stake in SK Enmove from Eco Solution Holdings Co. The acquisition will be conducted at a price of 71,605 won (US$52) per share, as documented in a regulatory filing.
According to Yonhap News Agency, SK Innovation currently holds a 70 percent stake in SK Enmove. With the completion of this transaction, SK Innovation will achieve full ownership of the unit. The company intends to fund the 859.3 billion-won purchase through the issuance of exchangeable bonds and the sale of treasury shares.
The decision to fully incorporate SK Enmove follows SK Innovation's move to withdraw its initial public offering (IPO) plan for the lubricant-making unit. "We have halted the IPO process for SK Enmove, considering the domestic financial market conditions and the company's overall circumstances," SK Innovation stated. The company believes that the full incorporation of SK Enmove is in line with its long-term strategic goals.