SK Innovation subsidiary SK On completes equity swap to secure 100% of SK On Jiangsu and divest Huizhou EVE stake, no capital dilution
SK Innovation's subsidiary SK On has completed an equity swap transaction to divest its entire 49% stake in Huizhou EVE United Energy and acquire a 30% stake in SK On Jiangsu from EVE Power Hongkong, as part of a portfolio rebalancing.
Following the swap, SK On now holds 100% of SK On Jiangsu and will receive a net difference payment of 200 million CNY from EVE ASIA. The acquisition amount was 2,108 million CNY or approximately 434.7 billion KRW, settled entirely in kind with no share issuance or capital dilution.
SK On Jiangsu reported a net profit of about 4.6 billion KRW in 2024, a significant decline from the prior year. SK On itself accounts for approximately 43.8% of SK Innovation's consolidated assets, underscoring its importance as a key subsidiary.
[AI Summary]SK Innovation's subsidiary SK On streamlined its Chinese joint venture structure through a non-dilutive equity swap, enhancing operational control but exposing earnings volatility. No shareholder value dilution occurs as the transaction involves only asset exchange and a cash difference, and the counterparty EVE entities are part of the listed EVE Energy group with moderate creditworthiness.
KOSPI Filing Information
[Correction of Description] Decision on Acquisition of Stocks and Investment Securities of Other Corporations (Major Management Matters of Subsidiary)