- SK Networks is set to sell its entire ownership in SK Rent-a-Car for KRW 820 billion, with the contract expected to be finalized shortly
- AEP emphasizes increasing corporate value by improving processes and services and advancing the rental industry
- SK Networks plans to become an AI company by enhancing financial stability and establishing a strong system between headquarters and subsidiaries for future growth.
SK Networks is in the process of streamlining its portfolio to speed up the growth of AI-focused businesses. The company has reached a preliminary agreement with Affinity Equity Partners (AEP) to sell SK Rent-a-Car and is close to finalizing the deal.
On the 20th, SK Networks (CEO: Hojeong Lee) stated that its board of directors met and agreed to divest 100% of its stake in SK Rent-a-Car to AEP for KRW 820 billion. It is expected to be completed in a month after approval from the acquiring company's board of directors, with the remaining tasks likely to be finished in the third or fourth quarter.
SK Networks, transitioning into an artificial intelligence (AI) company, selected AEP as the preferred bidder for the sale of its shares in SK Rent-a-Car in April. This move was aimed at strengthening the company's financial position and establishing a strong base for upcoming growth, and was preceded by a thorough due diligence process.
As per the agreement between the two companies, AEP will assume responsibility for all SK Rent-a-Car employees and assist in the effective operation of the business. The company also plans to increase its growth base and enhance competitiveness by expanding its services to cater to a wider range of customer needs.
Furthermore, the company plans to introduce a data-driven decision-making system and initiate process innovation. The company aims to offer a wider range of rental periods, billing options, and convenient additional services to customers, while also striving to drive industry growth and establish itself as a leading car life management brand.
“We have thoroughly discussed and reached a consensus on SK Rent-a-Car's strategic growth and development plans during our collaboration with SK Networks. Our commitment remains unwavering to invest in SK Rent-a-Car to increase its value and position it as a top brand in the field,” stated Min Charles Byung Chul, Head of AEP Korea. “We are excited about the prospect of a lasting relationship between SK Group and AEP, and we value their confidence in our role as a reliable partner for SK Rent-a-Car,” he added.
Going forward, SK Networks will support a successful completion of the SK Rent-a-Car sale process, while also strengthening financial stability and streamlining the management system between headquarters and subsidiaries in order to enhance management efficiency. Through this action, the company will set the groundwork for shifting towards an AI-focused organization, ensuring consistent success, and incorporating AI-driven business approaches in mainstay areas, aiming for a quantum leap by 2026.
“As announced at our annual general meeting earlier this year, we are creating business models using AI in key departments and subsidiaries, and establishing a structure to improve competitiveness based on an organic relationship between headquarters and subsidiaries.” stated an official from SK Networks. “We plan to keep advancing towards becoming an AI company by carefully observing the evolving business landscape and enhancing our internal skills, all while persisting in our pursuit of acquiring new sources of growth,” they added.
