SK Group Chairman Chey Tae-won will sell a 2.3% stake in holding company SK Inc. (034730.KS) for 944 billion won ($677 million) to fund a property division payment stemming from his divorce from Noh Soh-yeong, director of the Art Center Nabi. The sale will cut Chey's personal stake to 15.5% from 17.9%, and the combined holding including affiliated parties to 22.9% from 25.2%. It marks the first outright share sale by Chey — as opposed to transfers such as gifts among related parties — since the group adopted its current holding company structure in 2015.
SK said on the 2nd that it had filed a disclosure on the ownership change, under which Chey, the largest shareholder, will sell 1,653,924 shares. The actual sale will take place a month later, on Nov. 2. Chey's holding of SK common shares will fall to 11,321,548 from 12,975,472. The company said the sale is intended "to meet Chairman Chey's personal funding needs related to the property division suit with director Noh." It added that "his position as largest shareholder remains unchanged even after this transaction," stressing that "the combined stake including affiliated parties will stay above 20% — more than 30% on a voting-share basis — leaving the company's stable management foundation intact."
The 944 billion won in proceeds matches the amount the court ordered Chey to pay Noh in cash as a property division. Of that, 544 billion won will be sold to strategic investors through a block deal. The buyers took part in acquiring a portion of the largest shareholder's stake after weighing SK's business competitiveness and medium- to long-term growth potential, according to the company.
The remaining 400 billion won will be raised through a price return swap (PRS) with securities firms. Under a PRS, the parties settle gains and losses based on future moves in SK's share price, allowing the largest shareholder to share in the upside from growth in the company's value for a set period. The structure was designed to minimize market impact, such as a drop in the share price, from Chey's stake sale.
Chey said he will continue to focus on accountable management and on raising corporate value. SK said it will consistently pursue its existing growth strategy, investment plans and shareholder return policies.
