SK On's Equity Swap with EVE: Disposal of 49% Stake in Huizhou EVE and Acquisition of 30% Stake in SK On Jiangsu... Net Cash Inflow of 200M CNY for Portfolio Rebalancing
SK On will sell its entire 49% stake in Chinese battery maker Huizhou EVE United Energy for approximately 475.9B KRW (2,308M CNY) and simultaneously acquire a 30% stake in SK On Jiangsu from EVE Power Hongkong in an equity swap transaction.
A cash difference of 200M CNY (approx. 41.2B KRW) from the swap will be paid by EVE ASIA Co., Limited to SK On, resulting in a net cash inflow for SK On.
The disposal amount of 2,308M CNY was calculated using the initial exchange rate (1 CNY = 206.20 KRW) on the board resolution date (Nov 19, 2025) and may vary with the actual settlement rate.
The transaction aims to rebalance SK On's portfolio. If not closed within 9 months of the contract date, it will automatically terminate and the stakes will be restored.
SK On is a major subsidiary of SK Innovation, representing about 43.8% of SK Innovation's total assets as of the latest fiscal year end. This deal is part of a strategic restructuring within the group.
[AI Comprehensive Analysis]This equity swap is a positive move that simplifies SK On's battery business structure in China and generates cash inflow, without diluting existing shareholders or introducing significant financial risk. However, investors should monitor potential delays due to regulatory approvals and exchange rate fluctuations.
KOSPI Filing Information
Filing: [Correction of Description] Decision on Disposal of Shares and Investment Securities in Other Corporations (Major Management Matters of Subsidiary)