SK Innovation shareholders approved the firm’s high-profile merger with SK E&S in a landslide vote of 85.75 percent on Tuesday, paving the way for the launch of a mega-sized energy company.
The combined entity will start its operation on Nov. 1, according to the result of the recent shareholders’ meeting.
The asset value of the merged company is estimated to reach 100 trillion won ($75.17 billion), with its annual sales forecast to top 88 trillion won. This is the largest among any private energy firms headquartered in the Asia-Pacific region.
SK Group expects the latest merger to generate more synergies for its diverse energy businesses, thereby helping the company stabilize financial soundness 한국을 and enhance profitability. SK Innovation operates petrochemical and battery businesses, while SK E&S focuses on liquefied natural gas (LNG) and renewable energy sectors.
An overwhelming majority of shareholders voted in favor of the proposed merger. But as was widely expected, the National Pension Service (NPS), the second-largest shareholder of SK Innovation, opposed the merger. The state pension fund secured a 6.2 percent stake in SK Innovation as of the end of June. SK Inc. is the largest shareholder, with a stake of 36.2 percent in the company.
