SK chairman to unload $700.8 mil. stake in holding firm to pay ex-wife
SK Group Chairman Chey Tae-won, left, and his former wife Roh Soh-yeong / Yonhap
SK Group Chairman Chey Tae-won will unload his stake in the group’s holding firm SK Inc. worth 944 billion won ($700.8 million) to finance a property division payment to his former wife, Roh Soh-yeong, the group said Friday.
In a regulatory filing, SK Inc. said Chey, its largest shareholder, will sell 1,653,924 shares in the holding company, equivalent to a 2.3 percent stake. The transactions are scheduled for Nov. 2.
SK Group said the stake sale is intended to “meet the largest shareholder’s personal funding needs related to the property division lawsuit.”
“The transaction structure was carefully reviewed to minimize the impact on the market and shareholders, while allowing Chey to maintain stable management of the company and continue fulfilling his responsibilities as its largest shareholder.”
The filing said all of the transactions will be conducted through after-hours block trades. Of the total, 544 billion won worth of shares will be sold to a designated strategic investor, while another 400 billion won worth will be sold in a transaction involving a price return swap with securities firms.
Following the transactions, Chey’s stake will decline from 17.8 percent to 15.5 percent, while the combined stake held by Chey and related parties will fall from 25.2 percent to 22.9 percent. Based on voting shares, Chey’s stake will decrease from 23.9 percent to 20.8 percent, while the combined stake including related parties will fall from 33.5 percent to 30.5 percent.
SK said Chey will remain the company’s largest shareholder after the transactions, with the combined stake held by him and related parties remaining above 20 percent.
The Seoul High Court previously ruled in the retrial of Chey and Roh’s property division that Chey must pay Roh 944 billion won, plus an annual interest of 5 percent from the date the ruling becomes final until payment.
On Aug. 31, Chey agreed to pay the 700 billion won ($524.3 million) portion of the settlement and filed to contest only the remaining 244 billion won.