SK Holdings divests 11% stake in SK Biopharm to raise $1 bn

[Photo provided by SK Biopharmaceuticals Co.]

SK Holdings Co. has offloaded an 11 percent stake in biotech subsidiary SK Biopharmaceuticals Co. at 1.1 trillion won ($1 billion) in after-hours block sale to stock ammunition for the third-largest Korean conglomerate’s new focus in green, bio, digital and advanced materials businesses.

The holding firm for SK Group shed 8.5 million shares in SK Biopharmaceuticals, which went public in July last year at an IPO price of 49,000 won, through a block deal after the market closed on Tuesday, according to its regulatory filing on Wednesday. The shares were sold at 129,900 won apiece, 12 percent discounted from the stock’s Tuesday closing of 147,500 won.

The deal brings down SK Holding’s stake in SK Biopharmaceuticals to 64 percent from 75 percent reported at the end of September 2020.

Shares of SK Biopharmaceuticals plunged 17.3 percent, close Wednesday at 122,000 won. SK Holdings shares finished the day down 3.8 percent at 265,000 won.

The new funding is expected to go to investment in the group’s new focus in green, biotech, digital and advanced materials.

SK Biopharmaceuticals is best known for Cenobamate, an epilepsy drug that received marketing approval in the U.S. in 2019. It is waiting for marketing approval for the drug in Europe.

The block sale of SK Biopharmaceuticals shares was jointly handled by Korea Investment & Securities, Citigroup Global Markets Korea Securities, and Credit Suisse. The price band was set with discounts of 9 to 12 percent from Tuesday’s closing price.

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