On the news that SK Group will team up with a private equity firm to streamline its renewable energy businesses within the group, SK eternix jumped straight to the upper limit (the top of the daily price band) on the 10th.
As of 9:43 a.m. that day, SK이터넉스 was trading at 44,350 won, up 10,200 won (29.87%) from the previous transaction day.
Investor sentiment was seen as boosted by news that SK Group will restructure its renewable energy business in partnership with global private equity firm KKR. According to a Korea Economic Daily report, the sale targets include the management control (30.98%) of SK eternix and the renewable energy institutional sector at SK Innovation and SK ecoplant.
After the acquisition, KKR plans to establish a joint venture (JV) with SK Group. It was also reported that SK Group's key affiliates and KKR will each make additional cash contributions to the JV.
The market views that through this sale, the renewable energy businesses of SK eternix, SK Innovation E&S, and SK ecoplant will be integrated, while cash inflows will allow for improvements in the financial structure. The total transaction size is said to be around 1.8 trillion won.