SK Discovery Sells Stake in SK D&D, Focusing on Core Businesses
SK Discovery Co., a South Korean chemical company, has sold its entire stake in real estate affiliate SK D&D to Hahn & Company. The transaction, valued at around 74.2 billion won ($52.7 million), involved over 5.8 million shares, representing SK Discovery's full 31.3 percent interest. Despite this sale, SK Discovery will continue to cooperate with SK D&D as a business partner.
In 2021, SK Discovery acquired SK Gas' entire stake in SK D&D, leading both firms to hold 31.3 percent of the company. Following this acquisition, SK Discovery has decided to focus on its core areas of green materials, energy, and biotechnology, while exploring expansion opportunities. This strategic shift aligns with SK Group's portfolio reshaping drive, aiming to secure 80 trillion won by 2026 and invest over 100 trillion won in growth engines like AI and semiconductors.
SK D&D, a real estate development and operations firm, focuses on office buildings, residential complexes, multi-purpose industrial complexes, and hotels. In 2022, the company reported revenue of 870.9 billion won and operating profit of 53.7 billion won. In the second quarter of 2023, SK D&D's operating profit surged 13-fold year-on-year to 33.5 billion won, indicating a strong performance in the real estate sector.
SK Discovery Co.'s sale of its stake in SK D&D to Hahn & Company marks a significant shift in the company's portfolio. Despite the sale, SK Discovery will continue to collaborate with SK D&D, demonstrating the value both companies place on their ongoing partnership. SK Group's broader strategy to invest in growth sectors like AI and semiconductors suggests a commitment to driving innovation and expansion.
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