SK Innovation and SK E&S have received shareholder approval for their proposed merger, paving the way for the creation of the largest private energy company in the Asia-Pacific region. The combined company will have assets of KRW 100 trillion and projected revenues of KRW 88 trillion.
On August 27, SK Innovation held an extraordinary general meeting at SK Seorin Building in Seoul. Shareholders ratified the merger agreement with an approval rate of 85.75%, exceeding the requirements for a special resolution. This mandate required the approval of at least two-thirds of the shareholders present and one-third of the total shares issued.
The merger received broad support from both domestic and international investors. In particular, 95% of foreign shareholders voted in favor of the plan, following the recommendations of prominent proxy advisory firms ISS and Glass Lewis.
The new company is expected to commence operations on November 1, 2024. This strategic consolidation aims to address market uncertainties and create a foundation for future growth in the energy business. The merger will combine SK Innovation’s oil and battery businesses with SK E&S’s liquefied natural gas (LNG) and renewable energy businesses, enhancing the overall energy portfolio.
According to financial projections, the merger synergies are expected to generate EBITDA of more than KRW 2.2 trillion by 2030, with an overall EBITDA target of KRW 20 trillion. The combined company is expected to benefit from increased revenue stability and improved financial structure, leveraging SK E&S’s consistent profits from LNG and power businesses.
Mr. Park Sang-kyu, CEO of SK Innovation, stated that the company will focus on ensuring a smooth merger process and will “review and implement various shareholder-friendly measures after the merger is completed.
This merger represents a significant development in Asia’s energy sector, positioning the new company to provide comprehensive energy solutions in line with global market demands.
Source: SKinno News
