This article was published on April 17, 2025, at 6:44 a.m. on the ChosunBiz MoneyMove (MM) site.
SK Ecoplant is said to be in trouble as it is in the process of selling its waste subsidiaries Renewus and RenewOne in a bulk sale, with the selling entity SK Corporation reportedly facing challenges. Only two entities participated in the preliminary bidding for the sale, Kohlberg Kravis Roberts & Co. (KKR) and STIC Investments, and only KKR submitted a price that met expectations.
SK Corporation has been reported to be viewing the selection of KKR as the preferred bidder for one-on-one negotiations as a risky undertaking. As a result, there is a situation where there is a push to get STIC Investments, which offered a price well below expectations, to complete the process.
On the 17th, according to sources in the investment banking (IB) industry, SK Ecoplant's major shareholder, SK Corporation, recently conducted a preliminary bid for the sale of SK Ecoplant's subsidiaries, with KKR and STIC Investments participating. Carlyle, which had been mentioned as a strong candidate, reportedly did not participate at the last minute.
The expected corporate value of the two companies from the selling side is approximately 2 trillion won. The sale includes a 75% equity stake in the environmental management subsidiary Renewus and 100% of RenewOne. Essentially, the entire environmental division of SK Ecoplant, excluding its IT waste company SK Tesse, is up for sale. In the case of Renewus, it was acquired for 900 billion won from Affirma Capital in 2020 and subsequently received 90 billion won in investment, while RenewOne was acquired in 2021 for a total of 610 billion won.
The combined EBITDA of Renewus and RenewOne has not been made public. Last year, the standalone EBITDA for Renewus was 28.3 billion won, while RenewOne recorded a deficit; however, SK Ecoplant has explained that the combined EBITDA shows a significant difference from these figures.
According to sources in the IB industry, of the two candidates participating in the acquisition battle for Renewus and RenewOne, only KKR reportedly met SK Corporation's expectations. The price proposed by STIC Investments was said to be far below the expectations. However, the exact amount STIC proposed has not been disclosed.
An IB industry source noted, "In principle, SK should select KKR, which submitted a high price, as a preferred bidder to finalize the deal; however, there is a strong sentiment internally that relying solely on KKR poses a risk."
In response, the industry believes that SK Corporation will either persuade the existing bidder STIC to complete the race or consider accepting additional bids. STIC is reported to have established the 'STIC Opportunity Fund III' with a scale of about 2 trillion won last year, and it is said to have approximately 1.2 trillion won in dry powder available.