SK Group Chief to Sell $701M Stake for Divorce Settlement
SK Group Chairman Chey Tae-won to offload $701 million in SK Inc. shares to fund his divorce settlement with former wife Roh Soh-yeong.
In a massive financial move driven by personal legal battles, SK Group Chairman Chey Tae-won has announced plans to offload a significant portion of his holdings in the holding company, SK Inc. The sale, valued at approximately 944 billion won (USD 701 million), is intended to fund a court-ordered property division following his divorce from former wife Roh Soh-yeong.
The Legal Battle and Court Ruling
The decision follows a July ruling by the Seoul High Court, which ordered Chey to pay the specified amount to Roh Soh-yeong, who serves as the director of Art Center Nabi. The legal dispute over asset division has seen multiple stages of appeal.
While the original award was for the full sum, Chey has sought to narrow the scope of the litigation. After appealing the ruling to the Supreme Court in August, he has accepted 700 billion won (approximately USD 513.8 million) of the award, while simultaneously challenging the remaining 244 billion won (approximately USD 179.1 million).
Details of the Massive Divestment
According to a regulatory filing from SK Inc. released on Friday, the Chairman—who is the firm's largest shareholder—will sell 1,653,924 shares. This represents a 2.3 per cent equity stake in the enterprise. The transaction process is scheduled to formally commence on November 2.
Breakdown of the Share Sale
The divestment structure is divided into two primary components to manage the liquidity and impact on the company:
- Strategic Investor: 544 billion won (approximately USD 399.3 million) worth of shares will be sold to a strategic investor who chose to invest based on the company's long-term growth prospects and business competitiveness.
- Securities Transactions: The remaining 400 billion won (approximately USD 293.6 million) will be managed through price return swap transactions arranged with various securities brokerages.
Impact on Ownership Structure
The sale will lead to a noticeable shift in the ownership landscape of the conglomerate. Following the transaction, Chey's personal holdings will drop from 12,975,472 common shares to 11,321,548 shares, reducing his individual ownership stake from 17.8 per cent to 15.5 per cent.
Furthermore, the combined controlling stake held by Chey and his related parties will see a reduction from 25.2 per cent down to 22.9 per cent.
Company Outlook Remains Steady
Despite the reduction in the Chairman's stake, SK Inc. has moved to reassure markets and stakeholders. The company stated that Chey Tae-won will remain focused on responsible management and enhancing corporate value. SK Inc. also reaffirmed its commitment to its current growth strategies, investment plans, and various shareholder value initiatives.