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SK Development shareholders approve merger plan with SK E&S, Yonhap reports

Shareholders of South Korea's. SK Development, parent of the country's largest oil. refiner and battery maker SK On, authorized on Tuesday a merger. with energy affiliate SK E&S, the Yonhap news firm reported,. pointing out the business.

The merger plan, revealed last month, would create a 100. trillion won ($ 75.35 billion) possession company, in an effort to. shore up the finances of loss-making battery unit SK On by. combining it with a lucrative business that has a more powerful. balance sheet, experts stated.

Shares of SK Innovation were trading up 2.6% after the. report, outshining the benchmark KOSPI, which was. down 0.5%.

Unlisted SK E&S operates businesses consisting of profitable. city gas utilities and melted natural gas (LNG) power. generation systems. It reported a 1.3 trillion won ($ 939.37. million) operating profit in 2023 and 11.2 trillion won in. sales.

Battery maker SK On has actually never ever earned a profit because it was. split off from SK Development in late 2021. Recently, it has been. dealing with a drop in electrical car battery shipments. amid a global slowdown in EV sales.

Moms and dad SK Development reported a combined 1.9. trillion won operating profit in 2023, generating 77.3 trillion. won in sales.

(source: Reuters)