SK Innovation to Absorb SKIET, Restructuring Nears End

SK Innovation is acquiring SK IE Technology (SKIET), its battery separator subsidiary, as part of a restructuring effort to address financial challenges and improve competitiveness. The merger was approved by the boards of both companies on August 25, with SK Innovation set to absorb SKIET following the transaction. The merger ratio is 1 share of SK Innovation for every 0.1174540 shares of SKIET.

SKIET shareholders will receive approximately 0.117 shares of SK Innovation for each share they own. The merger is scheduled to be completed by January 1, 2027, with the newly issued shares expected to be listed on January 18, 2027. The decision follows a prolonged slowdown in electric-vehicle demand, delayed recovery in key markets, and intensifying price competition from Chinese separator manufacturers.

SK Innovation anticipates that the merger will reduce duplicated expenses, improve decision-making efficiency, and create cost synergies, with an estimated annual cost savings of around 60 billion won. However, investors remain cautious, with SK Innovation's shares falling more than 3% in after-hours trading following the announcement.