SK Innovation considering sale of battery materials unit SKIET, paper reports

SK

15/05/2024 12:30

SEOUL, May 15 (Reuters) - South Korea's SK Innovation
 096770.KS  is considering selling its subsidiary SK IE
Technology (SKIET)  361610.KS  to restructure its battery
business, the Maeil Business newspaper reported on Wednesday. 
    The move is aimed at easing financial difficulty faced by SK
Innovation's battery-making unit SK On amid weakening demand for
electric vehicles, according to the newspaper, citing an unnamed
investment banking source. 
    SKIET  361610.KS  supplies separators - an essential battery
component - to EV battery makers including Tesla  TSLA.O 
partner Panasonic Corp  6752.T . 
    The report added that SK Group has recently decided on a
plan to sell SKIET's management rights and began contacting
potential buyers through major global investment banks. 
    SK Innovation owns a stake of 61.2% in SKIET, whose market
value stood at 4.09 trillion won ($3.01 billion) as of Tuesday. 
    An SK Innovation official said nothing has been decided, in
response to Reuters' request for comment. 
    SK On, whose clients include Ford Motor  F.N , Volkswagen
 VOWG_p.DE  and Hyundai Motor  005380.KS , widened its operating
loss to 332 billion won in the first quarter from 18.6 billion
won a quarter before as EV battery shipments fell. However, it
maintained its target to break even in the second half. 

($1 = 1,358.8300 won)

 (Reporting by Heekyong Yang and Jihoon Lee; Editing by Alison
Williams)
 ((jihoon.lee@thomsonreuters.com;))