SK to sell 49% stake in SK Lubricants to IMM Private Equity

South Korean conglomerate SK has agreed to sell a 49% stake in SK Lubricants to IMM Private Equity (IMM PE), through its unit IMM Credit Solution, for KRW1.5 trillion (USD1.34 billion), according to local media reports. 

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.

According to media reports, SK Lubricants is planning to sign a share purchase agreement with IMM Private Equity this week. Citi Global Market Securities is handling the transaction.

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. 

As part of its carbon reduction commitment by 2030, SK had committed to sell its 49% stake in SK Lubricants and SK Global Chemical.

SK Lubricants is a major player in the global base oil market, with manufacturing footprint in South Korea, Indonesia, and Spain.

Established in September 2006, IMM Private Equity is one of the leading private equity firms in South Korea, focusing on Korea and Korean-related investment opportunities.

SK Innovation will keep a 51% majority stake and will maintain management rights in SK Lubricants.

IMM Private Equity, which manages USD5.4 billion in assets, is said to be seeking investments in the e-mobility space. SK Lubricants is also a supplier of finished lubricants for electric vehicles (EVs).

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