- KORAMCO and Hyundai Oilbank signed the contract... for about  KRW 1.3 trillion.
- To ensure financial stability through large inflow funds and intensive investments to be made in future growing businesses
- KRW 100 billion self-tender to be offered to stabilize stock price and enhance shareholder value.
- “Under the stabilized profit structure, we will seek to improve performance and increase values for stakeholders including shareholders.”

SK networks is selling off its gas station business to seek financial structure stability and expedited investments on major future growing businesses.

SK networks has continued negotiations with the KORAMCO-Hyundai Oilbank consortium since signing an MOU at the end of last year. The company released an official disclosure on March 4th, 2020 that it concluded a contract, which was approved by the company’s board of directors (BOD), to sell real estate related to the petroleum retail business to KORAMCO, while handing over assets and workforce related to gas station operation to Hyundai Oilbank for a total of about at KRW 1.33 trillion. (Proceeds: KRW 300 billion from KORAMCO Reits & Trust; KRW 965.2 billion from KORAMCO Energy Plus Reits; and, KRW 66.8 billion from Hyundai Oilbank.)

The transaction is expected to be completed on June 1st after relevant procedures, i.e., general shareholders’ meeting, are performed. SK networks can now gain momentum to push forward growth strategies through choice and concentration centered around home care and mobility.

An SK networks executive revealed, “According to the contract, real estate, buildings and structures of 199 gas station sites will be transferred to KORAMCO Reits & Trust and KORAMCO Energy Plus Reits while lease rights for 103 leased gas stations and tangible assets related to gas station operations will be transferred to Hyundai Oilbank.” The executive added, “We will make sure that these operations are run as usual for the remaining period until the transaction gets closed successfully. On the other hand, we will seek effective ways to use the proceeds from the sale for raising our corporate value.”

SK networks plans to ensure financial stability by paying off its debts with the proceeds and make intensive investments in the customers goods business including SK magic and SK rent-a-car that are under sustained growth and also constitute the majority of the company’s profits. Furthermore, it will continue its efforts to develop additional growth engines that commensurate with its strategic orientations.

In the meanwhile, SK networks decided to arrange a KRW 100 billion -worth self-tender in order to raise market shareholder value which is depressed due to global economic recession and COVID-19. This self-tender is expected to contribute in stabilizing the company’s stock price and further play a positive role in terms of corporate value as the gas station business sales has laid a strong foundation for its financial stability and orientation for the future.

In this regard, “The entire organization including management is on the frontline of the company’s evolution into a customer-oriented digital company by making collaborative efforts to build a business portfolio that can be trusted by customers and realize shareholder value,” said an SK networks executive and added, “We will continue to demonstrate stabilized performance based on the robust profit structure.”