SK Innovation, the group’s energy holding company, announced that 85.76 percent of attending shareholders voted in favor of the merger at an extraordinary general meeting.
SK E&S, a highly profitable and unlisted affiliate, also held a shareholders' meeting and approved the proposal.
The merged company will be launched on Nov. 1, with assets totaling 100 trillion won ($75.2 billion) and annual revenue of 88 trillion won.
The merger ratio between SK Innovation and SK E&S was set at 1 to 1.19.
As part of a group-wide restructuring, the merger is seen as a strategy to turn around SK Innovation’s struggling battery unit, SK On, by leveraging the strong cash flow of SK E&S. SK On is 100 percent owned by SK Innovation.
"We will do our utmost to ensure that this merger, which will serve as a foundation for the company’s long-term stability and growth, proceeds smoothly," SK Innovation CEO Park Sang-kyu, said.
SK E&S is an energy subsidiary engaged in liquefied natural gas (LNG), hydrogen and renewable energy. In 2023, the company reported revenues of 11.2 trillion won and an operating profit of 1.3 trillion won.
reporter
Kim Joo-heon
jhkim123@ajunews.com
