[Click eStock] SK D&D, Expected Effects of Governance Restructuring

[Asia Economy Reporter Hwang Junho] Hi Investment & Securities has maintained the target price at 46,000 KRW, anticipating business expansion following SK Discovery's decision to acquire SK D&D shares previously held by its subsidiary SK Gas.

On the 21st, SK Discovery decided to purchase 34.1% of SK D&D shares held by its subsidiary SK Gas through an off-hours block trade. The acquisition price was approximately 282.8 billion KRW, applying a 20% control premium to the closing price on the trading day in accordance with relevant laws and regulations.

As a result, SK Discovery's business restrictions as a grandchild company under the Fair Trade Act have been lifted. Hi Investment & Securities viewed this as enabling active business expansion through securing various partnerships. The propulsion of the Proptech business, which integrates IT-based big data and artificial intelligence technologies to provide diverse information tailored to customers, is expected to accelerate. Additionally, in the renewable energy sector, SK Discovery is anticipated to expand business opportunities by securing various partnerships in existing wind power, solar power, and ESS projects.

Researcher Lee Sangheon of Hi Investment & Securities stated, "Under the environment where the renewable energy market is growing due to policies like the Green New Deal, SK Discovery is expected to lead value growth by becoming a renewable energy developer in fuel cells, wind power, solar power, and more."