SK chairman Choi Tae-won to sell 944bn won of shares for property division case
In short
SK Group chairman Choi Tae-won will sell 944 billion won worth of SK Inc. shares — 1,653,924 shares, or 2.26–2.3% of the company — under a plan disclosed on 2 October. The amount matches the property division payment ordered in his litigation with Noh So-young, and SK said the sale responds to his personal fund needs in that case. His stake falls from 17.76% to 15.49%, but SK said he remains the largest shareholder.
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Choi Tae-won, chairman of SK Group, will sell 944 billion won worth of shares in SK Inc., the group’s holding company, under a plan disclosed on 2 October. The sale covers 1,653,924 shares, or 2.26–2.3% of the company. The amount equals the property division payment ordered by a court in his litigation with Noh So-young, director of Art Center Nabi, and the papers link the sale to raising cash for that case. [ 1 , 2 , 3 ]
The transaction is split in two. According to the disclosure, 972,493 common shares go to a strategic investor for about 544 billion won at 559,387 won per share. The remaining 681,431 shares go to a securities firm for about 400 billion won under a three-year price return swap, with the sale price and the swap’s base price set at 587,000 won per share, the closing price on the trading day before the contract. Both legs are to be carried out as after-hours block trades, with the plan period running from 2 November to 1 December. [ 1 , 3 ]
After the sale, Choi’s stake in SK Inc. falls from 17.76% to 15.49%, and the combined stake of Choi and related parties falls from 25.2% to 22.9%, Bloter reported. On voting shares, Choi’s holding drops from 23.9% to 20.8% and the related-party total from 33.5% to 30.5%. SK said the chairman remains the largest shareholder and that the stakes stay above 20%, and above 30% on voting shares, so there is no change to the company’s stable management base. [ 1 , 3 ]
Hankook Ilbo reported that the remand court ordered Choi on 24 July to pay 944 billion won in the property division case, and that he appealed to the Supreme Court, contesting the appropriateness of 244 billion won of that sum. The paper said the market viewed the share sale as preparing cash for the case, because the sale amount matches the court-ordered figure exactly. [ 1 ]
SK said it decided the structure and size of the transaction after considering management stability and corporate value and to minimise the impact of a large share sale on the market. It did not disclose who the strategic investor is. Hankook Ilbo named Korea Investment & Securities as the counterparty to the swap, while Bloter said neither the identity of the strategic investor nor the name of the securities firm was made public in the disclosure. [ 1 , 3 ]
Why it matters
The share sale ties the chairman’s family litigation directly to the ownership of SK Inc., the group’s holding company, and the transaction is sized exactly to the court-ordered property division payment. SK said the structure preserves the largest shareholder’s position and the company’s stable management base, so the immediate effect on management is limited, but the outcome of the appeal over part of the payment remains open.
Key facts
- Choi Tae-won, chairman of SK Group, plans to sell 1,653,924 SK Inc. shares, or 2.26–2.3% of the company, for about 944 billion won. [ 1 , 3 ]
- The sale amount equals the property division payment ordered in his litigation with Noh So-young, director of Art Center Nabi. [ 1 , 3 ]
- About 544 billion won of the shares go to a strategic investor and about 400 billion won to a securities firm under a three-year price return swap. [ 1 , 3 ]
- The transactions are to run from 2 November to 1 December in after-hours block trades. [ 1 , 3 ]
- Choi’s stake falls from 17.76% to 15.49%, and SK said he remains the largest shareholder. [ 1 , 3 ]
- SK said the deal structure was chosen to minimise the impact on the market and to preserve stable management. [ 1 , 3 ]
- The disclosure did not name the strategic investor. [ 1 , 3 ]
Confirmed by several sources
- Choi Tae-won will sell SK Inc. shares worth about 944 billion won, an amount equal to the court-ordered property division payment, to raise personal funds in that case. [ 1 , 2 , 3 ]
- The plan was disclosed by SK Inc. on 2 October and covers 1,653,924 shares. [ 1 , 3 ]
- After the sale, Choi’s stake falls from 17.76% to 15.49%, and SK said his largest-shareholder position is unchanged. [ 1 , 3 ]
- The share sales are to be executed as after-hours block trades. [ 1 , 3 ]
Still unclear
- Who the strategic investor and the securities firm in the swap are. SK said it did not make the strategic investor’s identity public and Bloter said no names appear in the disclosure, while Hankook Ilbo named Korea Investment & Securities as the swap counterparty.
- How much Choi will ultimately owe in the property division case. Hankook Ilbo reports he appealed to the Supreme Court contesting the appropriateness of 244 billion won of the 944 billion won ordered on 24 July; no other document covers the appeal and no ruling is reported.
What local media are saying
Timeline, local time
- Hankook Ilbo reports that Choi Tae-won will sell 944 billion won of SK Inc. shares, the same amount as the court-ordered property division payment, split between a strategic investor sale and a price return swap with a securities firm. [ 1 ]
- Seoul Shinmun reports Choi decided to sell 2.3% of his SK stake to raise funds for the property division. [ 2 ]
- Bloter reports the disclosure details: 1,653,924 shares, a plan period from 2 November to 1 December, per-share prices of 559,387 won and 587,000 won, and a stake falling to 15.49%. [ 3 ]