SK Discovery Co., the intermediary holding firm of South Korea’s No. 2 conglomerate SK Group, is selling its entire 31.3% stake in property developer SK D&D Co. to Hahn & Co. for 74.2 billion won ($52.8 million), accelerating the group’s portfolio overhaul and handing control to the country’s largest private equity firm.
In a regulatory filing on Wednesday, SK Discovery said it has agreed to transfer 5.82 million shares at 12,750 won each to Hahn & Co.
The Seoul-based buyout firm, which already holds the same number of shares, will double its stake to 62.6%, becoming SK D&D’s controlling shareholder after the transaction.
Hahn & Co. plans to launch a tender offer for the remaining 6.96 million shares, or 37.4% of SK D&D, at the same price. Following a successful bid, the PE firm will take the real estate developer private.
Buoyed by the news, SK D&D shares jumped 13.2% to close at 12,670 won on Wednesday.
STRATEGIC SHIFTS
The divestiture underscores SK Discovery’s plan to shed non-core assets and channel resources into growth areas such as green materials, energy and biotech.
“Strengthening portfolio competitiveness and preparing for the future are at the core of this transaction,” a company official said.
The sale is part of SK Group’s broader portfolio rebalancing strategy to redeploy capital from lower-growth units into higher-return businesses.
SK Discovery acquired SK D&D stakes in 2021 from its affiliate SK Gas Ltd., while Hahn & Co. took a 31.1% stake in the property developer in 2018.
HAHN & CO. EXPANDS A PORTFOLIO OF SK UNITS
The latest deal builds on Hahn & Co.’s reputation as the primary consolidator of SK’s divested units, bolstering its clout in Korean corporate restructuring.
Since 2018, the firm has acquired a slew of SK affiliates, including SK Shipping Co., the chemical mechanical polishing (CMP) pads manufacturing division of SK Enpulse Co. and SKC Co.’s film business.
In April, it closed the 2.6 trillion won purchase of SK Specialty Co., the world’s largest supplier of specialty gases for semiconductors and advanced displays.
Hahn & Co. had also explored acquiring SK Siltron Co., Korea’s only silicon wafer producer, in a deal estimated at around 3 trillion won. But it withdrew its offer, according to investment banking sources.
The buyout firm said on Wednesday that delisting SK D&D would maximize its long-term corporate value.
The tender offer will run through Oct. 29, with Hahn & Co. pledging to purchase all shares tendered in cash.
SK Discovery said that even after the sale, it will continue collaborating with SK D&D as a business partner.
By Si-Ook Ahn
siook95@hankyung.com
Sookyung Seo edited this article.
