Given the bleak forecast for business in 2023, the potential asset sales come at a time when SK Group is hoarding cash and delaying investments in new initiatives.
According to KedGlobal, SK South East Asia Investment owns 6.1 per cent of Vingroup, Vietnam's largest conglomerate, and 9.5 per cent of Masan Group, the second-biggest in the country.
It also boasts 14.5 per cent of Maroon Bells, the company that owns Pharmacity; 54 per cent of Imexpharm; 16.3 per cent of VinCommerce; 4.9 per cent of The CrownX Corporation; and an unspecified stake in fintech platform BigPay, owned by Malaysia's AirAsia Group.
Last month, SK E&S, the renewable energy operator of SK, signed an agreement to buy a 99.99 per cent stake in New Renewable Energy No.1, a subsidiary of Gia Lai Power Electricity, to set a foot in the renewable energy sector in Vietnam. The deal between SK E&S and its partner is estimated at $37.5 million.
SK E&S began implementing energy projects in Vietnam in 2020, and currently operates wind farms and solar power projects in Ninh Thuan province and elsewhere via its subsidiaries in Singapore.
A representative from SK shared with KedGlobal that no final decisions have yet been taken and it will be decided later on which firms will be involved and how much equity would be up for grabs.
“SK is not in a financial crunch. It just wants to preemptively secure funds to prepare for worsening economic conditions,” said an investment banking industry source.
SK E&S sets solid footprint in renewable energy SK E&S, South Korea's largest private renewable energy operator, signed an agreement to buy a 99.99 per cent stake in New Renewable Energy JSC No.1, which is a subsidiary of Gia Lai Power Electricity JSC to set a foot in the renewable energy sector in Vietnam. |
Implications of digital assets in M&A Digital assets have gained a lot of attention over retail investors, institutional investors, companies and policymakers in recent years. Despite the dramatic decline of the market, the potential growth for digital assets over the upcoming decade is expected to be high and reach tenths of trillions of US dollars market capitalisation according to prominent money managers like Fidelity and Ark Invest. |
Samsung to raise total investment in Vietnam to $20 billion Samsung Electronics vice chairman Han Jong-hee said the company would raise total investment in Vietnam to $20 billion, focusing on artificial intelligence and big data. |
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