SK Construction to Complete '1 Trillion Won Big Deal' and Enter Environmental Business

[Asia Economy Reporter Chunhee Lee] SK Engineering & Construction is entering the environmental business by completing the acquisition of EMC Holdings, the largest environmental waste disposal company in Korea.

On the 1st, SK Engineering & Construction held a board meeting and resolved agenda items including the signing of a stock purchase agreement (SPA) for the acquisition of EMC Holdings, according to a disclosure on the same day.

Accordingly, SK Engineering & Construction will acquire 100% of EMC Holdings, which is currently held by Apalma Capital. The transaction amount is reported to be over 1 trillion KRW.

Earlier, on the 19th of last month, SK Engineering & Construction was selected as the preferred negotiator through Citi Global Market Securities, the sales agent for EMC Holdings. At that time, among many large investors participating in the main bidding, SK Engineering & Construction not only offered the highest price but also was known to have an advantage in other non-price conditions.

SK Engineering & Construction has recently been actively promoting eco-friendly and new energy businesses through organizational restructuring. In June, it established an eco-friendly business division, composed of organizations such as the Smart Green Industrial Complex Business Group and the Recycling Business Group. SK Engineering & Construction President Jaehyun Ahn directly leads the division and oversees the business.

Through the acquisition of EMC Holdings, SK Engineering & Construction is expected to create synergy by handling waste for group affiliates in refining and petrochemicals such as SK Innovation and SK Incheon Petrochem, while entering the environmental business.

The amount and timing of capital investment in the newly established corporation have not been finalized. SK Engineering & Construction explained in the disclosure that related decisions will be delegated to the management committee, and after the acquisition price is finalized, a capital investment equivalent to the acquisition price is planned for the new corporation.