April 20, 2024
Industrials
SK E&S sells entire stake in China Gas Holdings
The energy unit of SK Group said it sold all of its 10.25 percent stake (535 million shares) in China Gas Holdings through a block deal on the Hong Kong Stock Exchange the previous day in a regulatory filing on April 17.
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The sale price was 1.8 trillion won ($1.4 billion), 11.1 percent off the closing price of the contract date, through demand forecast. In September last year, SK E&S also disposed of its 3.3 percent stake in CGH for 786.8 billion won. Currently, only its subsidiaries own stakes in CGH, totaling 1.45 percent.
SK E&S said the move was aimed at “improving its financial structure.”
Concerns over a liquidity crisis for energy companies have been growing due to the recent coronavirus outbreak. International credit rating agency Standard & Poor’s also predicted in a report last month that “the pressure on SK E&S’ financial indicators would intensify due to increased capital spending and borrowing from investments in the Australian liquefied natural gas project.”
By Shin Ji-hye (shinjh@heraldcorp.com)
