On the 23rd, the news of the merger between SK and SK Materials rose early in the market. A view of SK Materials’ headquarters in Yeongju./Photo=SK Materials
SK and SK Materials are rising early in the market on news of the merger.
At 9:05 am on the 23rd, SK is trading at 277,000 won, up 17,500 won (6.74%) from the previous trading day. SK Materials is trading at 427,500 won, up 12,600 won (3.04).
SK Materials announced on the 20th that after the physical division of the holding business (SK Materials Holdings) and the special gas business (SK Materials), SK will merge with SK Materials Holdings. SK Materials Holdings owns 100% of SK Materials.
The merger ratio is 1 to 1.5778412, and 1.5778412 SK shares are issued for each SK Materials share. The stock repurchase right price is 415,751 won.
SK Materials’ stock price is evaluated to have secured downward rigidity as the stock repurchase right price is at the current stock price. Since it will be linked with SK after the merger, SK’s share price, which has a large market cap, is expected to determine the direction of SK Materials.
Hwang Go-woon, a researcher at KB Securities, said, “After the announcement of the merger, SK’s after-hours share price rose 4.4%, but SK Materials’ share price fell 0.2%. However, considering the expected stock purchase price, the possibility of large fluctuations in the stock price is expected to be low.”
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