April 24, 2024

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[THE INVESTOR] SK Holdings on Nov. 20 said it has sold its 50.1 percent stake in used car business SK Encar.com to Australia-based Carsales.com for 205 billion won (USD$186. 76 million). 

The deal, which is expected to be closed on Jan. 25, puts an end to SK’s successful secondhand car business that began in 2000. 

With the latest transaction, Carsales.com owns the entire 500,000 shares of SK Encar.com, its online platform. SK Encar’s business is divided into two separate divisions -- online and offline. The online platform became a separate entity in 2014 through a joint venture when the Australian firm bought a 49.99 percent stake. 

SK also announced it has entered into an official agreement to sell the offline business of SK Encar to a local private equity investment firm Hahn & Co., for an undisclosed sum. 

SK Encar, which operates 26 outlets across the country, is Korea’s largest secondhand car dealer. The business, however, faced limitations for expansion after the nation’s antitrust law designated used car business as suitable for small and medium enterprises. 

The brand name will be retained after the sale, according to the firm. 

“The deal is part of our strategic shift in the car business,” a spokesperson for SK Holdings told The Investor. “SK will focus more on future car businesses, including car-sharing, autonomous vehicles and building infrastructure.”

Korea’s third-largest conglomerate has been ramping up investments in car-sharing firms. In 2015, it purchased a 20 percent stake in Socar, the nation’s No. 1 car-sharing operator, for 58.9 billion won and added another 15 billion won this year. 

In September, SK invested in Silicon Valley car-rental startup Turo, leading the US$92 million Series D round with Germany’s Daimler. SK’s exact investment and terms, however, were not revealed.

By Ahn Sung-mi (sahn@heraldcorp.com)