SK Innovation Absorbs Separator Unit SKIET

SK Innovation and its subsidiary separator business, SK IE Technology Co., Ltd. (SKIET), have agreed to merge. The two companies held board meetings on August 25 to approve a merger plan. The merger aims to strengthen SK Innovation's financial stability and operational efficiency, ultimately enhancing the separator business's competitiveness and shareholder value.

The merged company will be SK Innovation, while SKIET will dissolve and follow standard merger procedures. New merger shares will be issued by SK Innovation to SKIET shareholders, with a ratio of 1 share of SK Innovation for every 0.1174540 shares of SKIET. The Financial Investment Services and Capital Markets Act governs the merger process, with plans to present the merger proposal to the SK Innovation board and SKIET shareholders' meeting by November 24, and complete procedures by January 1 of the following year.

The merged company will list new shares on January 18. SK Innovation's merger is intended to incorporate SKIET's separator business into the parent company, addressing recent challenges such as a slowing global electric vehicle market, delayed demand recovery in key markets, and intensified price competition from Chinese competitors.

The merger is expected to improve operational efficiency, reduce overlapping and financing costs, and bolster competitiveness through the combined research and development capabilities of both SK Innovation and SKIET.