SK Chairman Choi Tae-won to sell 2.3% stake for 944 billion won

Choi Tae-won, chairman of SK Group, has decided to sell 1,653,924 SK Inc. common shares — a 2.3% stake — for 944 billion won, according to a disclosure SK Inc. filed on the afternoon of Oct 2. Newsis reported the disclosed purpose as “personal fund procurement” and said the amount is seen as tied to the property division owed to Noh So-young, director of Art Center Nabi. After the sale, Choi's stake falls to 15.5% from 17.8%, and the stake held with related parties falls to 30.5% from 33.5%, Bloter reported, adding that his position as largest shareholder is unchanged. [ 1 , 3 , 4 ]

Newsis and Bloter reported the sale is split: about 544 billion won worth goes to a strategic investor at 559,387 won per share, and about 400 billion won worth goes to Korea Investment & Securities through a price return swap (PRS) at 587,000 won per share. The transaction is to run from Nov 2 to Dec 1 through after-hours block trades, Bloter said. Both outlets described the structure as intended to limit the impact on the share price and on existing shareholders. Bloter added that Choi chose a sale over collateral loans after SK Inc. shares fell nearly 20% in the three days following the ruling. [ 3 , 4 ]

Bloter's column set out the case history: the couple married in September 1988, the breakdown was disclosed in a December 2015 letter from Choi to media, and a divorce mediation filing in 2017 began the legal fight. The property division was set at 66.5 billion won in the first instance and 1.3808 trillion won in the second, the column said. The Supreme Court last October confirmed the divorce and 2 billion won in alimony while returning the property division to a lower court, which in July ruled 944 billion won. Choi re-appealed but narrowed his dispute to 244 billion won, accepting the rest, according to the column. [ 4 ]

Bloter said the voting stake including related parties dropping below one-third removes an effective veto over special shareholder resolutions such as charter changes, mergers and director dismissals, but argued that the buyers — a strategic investor that bought at a discount and Korea Investment & Securities, whose PRS ties its interests to Choi — are unlikely to side against him. It said the maturity of the PRS in three years is a point to watch. [ 4 ]

Separately, Newsis reported that SK Hynix said nothing has been decided on a possible US listing of its US grandchild company Solidigm, after speculation raised concerns about dilution of the parent's value and diversion of investment demand. SK Hynix said it is reviewing various measures to strengthen Solidigm's competitiveness and would consider the impact on existing shareholders when deciding whether to use outside capital. Newsis said both the stake sale and the Solidigm review show SK treating existing shareholder value as a key criterion in large capital transactions. [ 3 ]