SK innovation mulls buying back 10% of shares when subsidiary plans IPO

SK innovation logo [Courtesy of SK innovation]

SK innovation Thursday announced that it is considering a tender offer to acquire its own shares when its subsidiary SK on Co. plans for an initial public offering (IPO).

The company is also exploring ways to compensate investors who participate in the tender offer with SK on shares instead of cash. The scale of the stock swap deal is expected to be around 10 percent of SK innovation’s market capitalization.

The company said it is also considering special dividends utilizing the proceeds from SK on shares sold after the IPO.

During its shareholders meeting held in Seoul on Thursday, SK innovation said that it is reviewing a minimum cash dividend of 2,000 won ($1.53) per share for 2024 and 2025 business years.

SK innovation’s Chief Executive Officer and Vice Chairman Kim Jun was reappointed as an inside director during the meeting. Kim was highly praised for his leadership in the company’s shift to Carbon to Green strategy.

Shareholders also agreed to the appointment of Kim Joo-yeon and Lee Bok-hee as new outside directors and Park Jin-hoe as new auditor. SK innovation added one outside director this year to strengthen its board-centered management.

The shareholders also approved the company’s financial statements and compensation limit for directors as originally proposed.