SK divests of Vingroup stake for $1 bn in restructuring move

SK Group has cashed out its entire 6.05% stake in Vingroup, Vietnam’s largest conglomerate, for more than 1.3 trillion won ($935.5 million), concluding a six-year investment as part of its group-wide restructuring efforts.

According to sources in the investment banking industry in Vietnam on Wednesday, South Korea’s second-largest business group has recently completed the sale of its entire 6.05% stake in Vingroup, which was held through the group’s financial vehicle SK Investment Vina II PTE.

The Korean company began trimming its holdings in the Vietnamese group, whose businesses range from property and shopping malls to electric vehicles, in January, selling about a fifth of its position.

According to people familiar with the matter, SK has sold the stake in tranches during market trading hours to a predetermined third-party buyer. The buyer’s identity remains undisclosed.

SK Group initially invested 1.1 trillion won in Vingroup in 2019, becoming the fourth-largest shareholder of the Vietnamese conglomerate.

Considering that SK reaped about 120 billion won from the first stake sale, and Vingroup’s shares have more than doubled to 104,000 Vietnamese dong ($3.97) since January, SK is estimated to have raked in at least 1.3 trillion won from the entire stake sale.  

FOCUS ON CORE BUSINESSES

Korea's energy-to-chip conglomerate is expected to use the proceeds to enhance its financial health and invest in new growth engines.

SK Group has been reorganizing its business portfolio since last year by shedding non-core assets and reallocating capital toward strategic growth assets, such as semiconductors and batteries.

In November last year, the group’s energy unit, SK Innovation Co., which is also Korea’s largest energy company, merged with its liquefied natural gas (LNG) affiliate SK E&S Co. to create the biggest energy company by assets in the Asia Pacific region.

Last week, the energy company, which is also an intermediary holding company of SK Group, announced a plan to merge SK On Co. with SK Enmove Co., a lubricant supplier, as part of efforts to return the electric vehicle battery maker to profitability.

The group has also streamlined SK Ecoplant Co.’s business by selling off waste management units to focus on battery recycling.

Despite its exit, SK Group will continue to maintain close ties with Vingroup in various areas, especially future growth engines, said the Korean company. 

Write to Sang Hoon Sung at uphoon@hankyung.com

Sookyung Seo edited this article.