SK Innovation: Considering on Using Its Treasury Shares to Inject Capital into SK On

• SK Innovation is considering on using its treasury shares to inject capital into its EV battery making subsidiary SK On.

• The appraisal rights exercise price is 111,943 won per share (15% higher than current price). Many minority shareholders are likely to exercise their appraisal rights in SK Innovation.

• We remain Bearish on SK Innovation. We continue to be negative on the SK Innovation and SK E&S merger. Plus, we are concerned about the continued weakness at SK On.

Photo by Priscilla Du Preez 🇨🇦 on Unsplash

On 8 August, it was reported in the local media that SK Innovation (096770 KS) is considering on using its treasury shares to inject capital into its EV battery making subsidiary SK On. SK Innovation is currently discussing with major securities companies on using its treasury shares to raise funds. In addition to the treasury shares already available, there will likely be additional shares that SK Innovation will acquire from shareholders that oppose the merger between SK Innovation and SK E&S and exercise their appraisal rights.