SK Group halted plans to spin off SK Enmove Co., its lubricant manufacturing business, from SK Innovation citing increased regulatory scrutiny and ongoing market uncertainty, according to Korean media.
Korean President Lee Jae Myung’s election campaign promise to protect retail investors from unfair corporate dealing includes preventing public offerings such this one, in which only a small number of shares are offered to the public.
SK Innovation, a group holding company with operations in exploration, refining and electric vehicle batteries, will regain full ownership of SK Enmove by acquiring the remaining 30% stake held by IMM Credit & Solutions for KRW 859.26 billion (U.S.$635 million), according to Korean media.
The company had previously viewed the public offering as a method to raise money and show IMM the door. Instead, it will now fully consolidate SK Enmove within its operations. SK Enmove the world’s largest API Group III base oil producer and the biggest merchant Group III supplier.
Analysts suggest the move may be linked to longer-term plans to optimize the company’s asset portfolio, potentially including a merger with SK On, SK’s battery division.
SK Enmove – formerly SK Lubricants – has been offered for public listings several times, most recently in 2018 when it withdrew amid disappointing pricing in book‑building, and earlier underwhelming attempts in 2012 and 2015.
The company is the world’s largest API Group III base oil producer.