SK retains 60% stake in its lubricants business
Photo courtesy of SK Group

SK retains 60% stake in its lubricants business

South Korean conglomerate SK Innovation has closed the deal to sell a 40%, instead of the expected 49%, stake of its lubricants business to IMM Private Equity. SK Innovation keeps majority ownership of SK Lubricants, with a 60% stake.

The deal, with a price tag of KRW1.09 trillion or just under USD1 billion, will be made through IMM PEโ€™s newly launched unit IMM Credit Solution.

Last week, local media reported that SK has agreed to sell a 49% stake in SK Lubricants to IMM Private Equity. Reportedly, IMM PE eased out another strong contender, Korea Investment Partners, an affiliate of Korea Investment Holdings, which is one of the top financial conglomerates in South Korea. Citi Global Market Securities is handling the sale.

The South Korean conglomerate had earlier planned to spin off its lubricant business in an initial public offering, but withdrew after a lower than expected valuation for SK Lubricants. 

SK Innovation will complete the stake handover by July 30.