SK D&D Co., a real estate unit of South Korea’s SK Group, said on Monday it has completed the planned spin-off of its renewable energy business – a move aimed at improving its corporate value.
The new entity, SK Eternix Co., will concentrate on renewable energy businesses, including solar power, wind power, energy storage systems (ESS) and fuel cells, seeking growth in Korea and abroad.
The remaining entity, SK D&D, will be reborn as a property business operator.
“We expect this spin-off to improve the two separate companies’ corporate values by removing market discounts that have been put on us due to the combination of two different types of businesses,” said an SK D&D official after the company’s board meeting.
Logos of SK D&D and SK Eternix (Courtesy of SK D&D) The company said it will closely cooperate with its two affiliates – asset management firm D&D Investment (DDI) and real estate management firm D&D Property Solution (DDPS) – to diversify its business portfolio, including property project financing.
SHARES OF NEW SK D&D, SK ETERNIX TO START TRADING MARCH 29
Kim Do-hyun, chief executive of SK D&D, said: “Now is the best time for us to pursue a spin-off to cope with unstable market conditions and seek further growth. The platform business, which we began last year, will be one of our key growth drivers.”
Since last year, the company has been developing “residential service solutions” with Yanolja Cloud, a global cloud service provider, in Korea.
SK D&D's fuel cell power plant under construction in Korea Kim Hae-jung, chief executive of SK Eternix, said: “With our business expertise, we aim to harness the infinite potential of eco-friendly energy. Our goal is to become a global green energy solution provider.”
SK D&D announced its spin-off plan last September.
The spin-off ratio of SK D&D and SK Eternix was set at 77 to 23.
Trading of SK D&D’s shares, listed on the main Kospi bourse, is suspended through March 28.
SK D&D’s new shares and newly listed SK Eternix’s shares will begin trading on March 29.
Write to Ohsang Yoo at osyoo@hankyung.com In-Soo Nam edited this article.
