SK Inno’s eco-friendly investment transformation into a holding company… Electric vehicle battery company launched on Saedal 1st

Temporary general meeting of shareholders approves the business division of the company
IPO in the second half of next year… Establishment of oil development company

An electric vehicle battery company spun off from SK Innovation will be launched on the 1st of next month. SK Innovation, a latecomer in the battery business, expanded and grew its business at a frightening pace, overtaking Samsung SDI, the fifth largest in the global market, and pursuing LG Energy Solutions, the second largest.

SK Innovation held an extraordinary general meeting of shareholders at the SK Serin Building in Jongno-gu, Seoul on the 16th and decided on the business division. It is about establishing a tentative name of ‘SK Battery Co., Ltd.’, which operates the battery business, and ‘SK E&P Co., Ltd.’ 74.57% of shareholders participated in the general meeting, and the agenda was passed with an approval rate of 80.2%.

The National Pension Service (8.1% stake) opposed it, saying “it may damage shareholder value”, and although there was high opposition among individual shareholders (22%), specially related persons such as SK Corporation (33.4%) and SK Innovation treasury stock ( 10.8%) and foreigners and domestic institutions (26%) were unable to block the votes in favor.

“This is an essential decision to secure a clear advantage in global competition by enhancing business expertise and competitiveness,” said Kim Jun, president of SK Innovation.

The spin-off is a simple and physical spin-off in which SK Innovation owns 100% of the stocks issued by the two new corporations. SK Battery, a subsidiary, is in charge of producing medium and large batteries for electric vehicles, battery service business, and energy storage system (ESS) business. For the new name, ‘SK ON’, ‘SK Battery’, and ‘SK Next’ were nominated.

The new CEO is likely to be Ji Dong-seop, president of the battery business. The IPO is expected to take place in the second half of next year. SK E&P carries out oil development, production and exploration business, and carbon capture and storage (CCS) business.

By Lee Young-joon, staff reporter the@seoul.co.kr