The NH Investment & Securities and KOREIT consortium will acquire the site of Cowon Energy Service, a subsidiary of SK Innovation E&S, located in Daechi-dong, Seoul.
On the 18th, according to the investment banking (IB) industry, SK Innovation E&S selected the NH Investment & Securities and KOREIT consortium as the preferred negotiator for the Daechi-dong site of its subsidiary Cowon Energy Service. The transaction amount is expected to be around 500 billion won.
This site is included in the development target area of the Tancheon confluence in Seoul, and the city has been reviewing the site development for over 15 years. SK Innovation E&S decided to sell the site to secure investment funds necessary for new businesses after considering its utilization for a long time.
Earlier, the sellers had engaged in sales negotiations with a small number of buyers, which fell through, and they proceeded with a competitive bidding this year. They held the bidding on the 1st of this month after distributing teaser letters to multiple buyers in March.
SK Innovation E&S plans to finalize the contract in the second half of this year after continuing negotiations regarding the sale with the consortium. The NH Investment & Securities and KOREIT consortium is reportedly moving forward with the acquisition to develop the site.
Cowon Energy Service is a city gas company established in 1978. It supplies city gas to approximately 1.5 million households in the supply areas of southeastern Seoul and Gyeonggi Province. After being listed on the stock market in 1995, it voluntarily delisted through a public buyout in 2012, becoming a 100% subsidiary of SK E&S.
Meanwhile, SK Innovation E&S is also promoting the securitization of its liquefied natural gas (LNG) business. Recently, it selected MERITZ Securities as the preferred negotiator for a securitization transaction worth 5 trillion won. It is also working on the sale of its equity in the Boryung LNG terminal.