Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Event-Driven

<ul>
<li>In this insight, we discuss the potential sale of SK Specialty by SK Inc (034730 KS) which owns 100% stake in the company. </li>
<li>If SK Inc could sell SK Specialty at about 3 trillion won to 4 trillion won, this could reduce significantly reduce debt burden of SK Inc.</li>
<li>Our base case NAV value per share for SK Inc is 203,288 won per share, representing 38% upside from current levels.</li>
</ul>


In this insight, we discuss the potential sale of SK Specialty by SK Inc (034730 KS) which owns 100% stake in the company. 
If SK Inc could sell SK Specialty at about 3 trillion won to 4 trillion won, this could reduce significantly reduce debt burden of SK Inc.
Our base case NAV value per share for SK Inc is 203,288 won per share, representing 38% upside from current levels.


Potential Sale of SK Specialty and Deleveraging of the SK Group - Impact on SK Inc and NAV Analysis

<ul>
<li>We discuss the outlook for the likely impact on SK Inc post record divorce ruling for the SK Group Chairman Chey Tae-Won and his estranged wife Roh So-Young. </li>
<li>Last week, a South Korean appellate court ordered Chairman Chey to pay 1.38 trillion won to Roh. Chey is appealing this case and the Supreme Court's ruling is still pending. </li>
<li>It is in the best interest of SK Inc to raise the overall value of the company since the payment of the divorce is mostly based in cash.</li>
</ul>


We discuss the outlook for the likely impact on SK Inc post record divorce ruling for the SK Group Chairman Chey Tae-Won and his estranged wife Roh So-Young. 
Last week, a South Korean appellate court ordered Chairman Chey to pay 1.38 trillion won to Roh. Chey is appealing this case and the Supreme Court's ruling is still pending. 
It is in the best interest of SK Inc to raise the overall value of the company since the payment of the divorce is mostly based in cash.


Impact on SK Inc Post Record Divorce Ruling for SK Group Chairman Chey Tae-Won

Korea / Special Sits, Pairs, Index Rebalancing, Clepsydra Capital

Sanghyun Park

Korea / Special Sits, Pairs, Index Rebalancing

Clepsydra Capital

Investigate special situations, pairs, and index rebalancing trades in Korea.

<ul>
<li>The first trial in December 2022 ordered Chey to pay 67.5 billion KRW; today's ruling increased this to 1.38 trillion KRW plus 2 billion KRW, including splitting SK Inc. shares.</li>
<li>The increased settlement and SK Inc. share split could spark a management rights battle, causing SK Inc.'s stock price to jump as investors and shareholders react.</li>
<li>It may take a year for the final verdict, making a sustained stock price increase unlikely. Yet, differences between trial rulings could alter Chey's SK Inc. stake, sustaining market interest.</li>
</ul>


The first trial in December 2022 ordered Chey to pay 67.5 billion KRW; today's ruling increased this to 1.38 trillion KRW plus 2 billion KRW, including splitting SK Inc. shares.
The increased settlement and SK Inc. share split could spark a management rights battle, causing SK Inc.'s stock price to jump as investors and shareholders react.
It may take a year for the final verdict, making a sustained stock price increase unlikely. Yet, differences between trial rulings could alter Chey's SK Inc. stake, sustaining market interest.


Detailed Summary of Today's Second Trial Ruling in Chey Tae-Won's Divorce Case Involving SK Inc

<ul>
<li>It was reported today that SK Pharmteco completed a 660 billion won in pre-IPO funding valuing the company at 4 trillion won.</li>
<li>Prior to this investment, SK Inc owned a 100% stake in SK Pharmteco. After this investment, it is estimated that SK Inc will own about 83.5% stake in SK Pharmteco. </li>
<li>Our base case valuation of SK Inc is NAV of 19.0 trillion won (NAV per share of 258,967 won), representing a 47% upside from current levels.</li>
</ul>


It was reported today that SK Pharmteco completed a 660 billion won in pre-IPO funding valuing the company at 4 trillion won.
Prior to this investment, SK Inc owned a 100% stake in SK Pharmteco. After this investment, it is estimated that SK Inc will own about 83.5% stake in SK Pharmteco. 
Our base case valuation of SK Inc is NAV of 19.0 trillion won (NAV per share of 258,967 won), representing a 47% upside from current levels.


Updated NAV on SK Inc Post 660 Billion Pre-IPO Investment in SK Pharmteco

Equity Capital Markets

<ul>
<li>According to SCMP, Londian Wason is getting ready for an IPO in the US in 2024. Londian Wason is planning to raise nearly US$500 million in pre-IPO funding and IPO.</li>
<li>SK Inc owns about 30% stake in Londian Wason, a leading copper foil maker in China. It is estimated that SK Inc's stake is worth about US$1.1 billion. </li>
<li>In 2022, Londian Wason generated sales of 1.47 trillion won. Since SK's investment in Londian Wason in 2019, the company's sales has been growing at more than 50% per annum.</li>
</ul>


According to SCMP, Londian Wason is getting ready for an IPO in the US in 2024. Londian Wason is planning to raise nearly US$500 million in pre-IPO funding and IPO.
SK Inc owns about 30% stake in Londian Wason, a leading copper foil maker in China. It is estimated that SK Inc's stake is worth about US$1.1 billion. 
In 2022, Londian Wason generated sales of 1.47 trillion won. Since SK's investment in Londian Wason in 2019, the company's sales has been growing at more than 50% per annum.


Londian Wason Energy Tech: Planning an IPO in the US in 2024 (Impact on SK Inc)

South Korea

SK Holdings Co., Ltd. is a holdings company that is engaged in various industries including energy, chemicals, information technology, semiconductors, marketing, and services businesses in South Korea and internationally.

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SK Inc (034730 KS)

Potential Sale of SK Specialty and Deleveraging of the SK Group - Impact on SK Inc and NAV Analysis

In this insight, we discuss the potential sale of SK Specialty by SK Inc (034730 KS) which owns 100% stake in the company. Our NAV value of SK Inc...

Douglas Kim

Impact on SK Inc Post Record Divorce Ruling for SK Group Chairman Chey Tae-Won

Major SK Group companies plan to convene on 28 June to discuss reorganization/sales of major SK Group affiliates. Three companies in particular are...

Douglas Kim

Detailed Summary of Today's Second Trial Ruling in Chey Tae-Won's Divorce Case Involving SK Inc

This post provides a detailed summary of today's second trial ruling in Chey Tae-won's divorce case involving his stake in SK Inc.

Sanghyun Park

Updated NAV on SK Inc Post 660 Billion Pre-IPO Investment in SK Pharmteco

It was reported today that SK Pharmteco completed a 660 billion won in pre-IPO funding valuing the company at 4 trillion won.

Douglas Kim

Londian Wason Energy Tech: Planning an IPO in the US in 2024 (Impact on SK Inc)

Londian Wason is getting ready for an IPO in the US in 2024. Londian Wason is planning to raise nearly US$500 million in pre-IPO funding and IPO....

Douglas Kim

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