https://www.oann.com/sk-innovation-shareholders-approve-plan-to-split-off-battery-business/?utm_source=rss&utm_medium=rss&utm_campaign=sk-innovation-shareholders-approve-plan-to-split-off-battery-business

FILE PHOTO: The logo of SK Innovation is seen in front of its headquarters in Seoul
FILE PHOTO: The logo of SK Innovation is seen in front of its headquarters in Seoul, South Korea, February 3, 2017. REUTERS/Kim Hong-Ji

September 16, 2021

SEOUL (Reuters) – SK Innovation Co Ltd said on Thursday its shareholders had approved the company’s proposal to separate its battery business into a new company.

The decision paves the way for the battery business, a supplier for Ford Motor Co, Hyundai Motor Co and among others, to potentially raise funds and go public to finance its high-cost production capacity expansion.

The unit, which will be launched on Oct. 1, will first become SK Innovation’s wholly-owned subsidiary tentatively named “SK Battery Co Ltd.”

More than 80% of SK Innovation shareholders voted in favour of the plan, SK Innovation said in a statement.

South Korea’s National Pension Service, SK Innovation’s No.2 shareholder with an 8.05% stake, on Tuesday voted against the split-off plan, citing concerns about damage to shareholder value.

Shares of SK Innovation were trading down 1.4% versus a 0.5% fall in the benchmark KOSPI as of 0131 GMT.

(Reporting by Heekyong Yang and Joyce Lee; Editing by Jacqueline Wong and Stephen Coates)

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