SK Engineering & Construction is entering the environmental business by completing the acquisition of EMC Holdings, the largest comprehensive environmental platform 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, and announced on the 2nd that it had signed the purchase agreement with Apalma Capital.
Accordingly, SK Engineering & Construction will acquire 100% of the shares of EMC Holdings held by Apalma Capital. The purchase price, known to be over 1 trillion KRW, will be finalized after a subsequent adjustment process. SK Engineering & Construction plans to raise funds through its own capital and acquisition financing.
Earlier, on the 19th of last month, SK Engineering & Construction was selected as the preferred negotiation partner through Citi Global Markets Securities, the sales agent for EMC Holdings. At that time, among many large investors participating in the main bidding, SK Engineering & Construction was reported to have offered the highest price and also held an advantage in other non-price conditions.
EMC Holdings is a comprehensive environmental platform company covering the entire environmental industry from wastewater treatment to waste incineration and landfill. It operates 970 water treatment facilities nationwide, 4 waste incineration plants, and 1 landfill site. It is the number one market share holder in the domestic water treatment sector and is showing high growth in waste incineration and landfill sectors as well.
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 Ahn Jae-hyun directly leads the division and oversees the business.
Based on EMC Holdings’ business, SK Engineering & Construction plans to actively develop and introduce technologies such as Reuse and Recycling to grow into a technology-driven eco-friendly company. It will also promote new businesses integrated with existing plant and infrastructure sites, including the creation of smart green industrial complexes as digital-based eco-friendly manufacturing spaces, new energy generation using waste heat and spent catalysts, and the development of new-concept complex environmental treatment facilities combined with tunnel and underground space technologies.
SK Engineering & Construction expects to create opportunities to explore new global business prospects and anticipates significant synergy effects with group affiliates such as SK Innovation, which has high demand for waste treatment. Additionally, since EMC Holdings’ business sites are distributed nationwide, the company plans to promote mutual growth with local small and medium-sized business partners (collaborators) and maximize social value through financial, technical, and educational support.
President Ahn Jae-hyun of SK Engineering & Construction stated, "We have secured future growth engines by fully engaging in the eco-friendly business," and added, "We will grow into a technology-driven eco-friendly company that advances the domestic environmental industry and helps solve global environmental issues."
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