| SK Holdings headquarters in Seoul, left, and an ESR's logistics center in Shanghai / Courtesy of SK Holdings |
By Park Jae-hyuk
SK Holdings said Thursday it sold a 4.6 percent stake in asset management company ESR for 22.5 Hong Kong dollars ($2.90) per share in a block deal to unidentified funds.
The total value of the shares sold is around 480 billion won ($407 million), so SK Group's holding firm was able to retrieve almost the entirety of its investment in the Hong Kong-based logistics and real estate platform developer.
Before ESR was listed on the Hong Kong Stock Exchange last November, SK Holdings bought an 11 percent stake in the firm for 490 billion won through investments in August 2017 and September 2018.
After the recent block deal, SK Holdings still holds a 6.4 percent stake worth around 740 billion won as of Wednesday's closing price.
The value of ESR shares has risen 2.5 times higher since SK Holdings invested in the firm.
Founded in 2011, ESR operates 270 logistics center worldwide and has more than 200 global clients including Amazon, Alibaba and JD.com. Following the rapid growth of the e-commerce market in the Asia-Pacific region, it has expanded its presence with specialized cutting-edge infrastructure.
Its valuation has soared since its listing market. Its stock price rose 47 percent to 24.75 Hong Kong dollars, Wednesday, from its initial public offering (IPO) price, 16.8 Hong Kong dollars.
Considering the growth rate, the value of its shares held by SK Holdings is expected to rise further.
"As a holding firm specializing in investments, we have established a solid investment portfolio incomparable to any other domestic holding companies," an SK Holdings official said. "We will continue to achieve good results from our other investments and make efforts to create a virtuous cycle with them."
Using the money it earned from the SK Biopharmaceuticals IPO, interim dividends paid by SK E&S and the latest block deal, SK Holdings plans to reinvest in industries that will be future growth engines, such as biopharmaceuticals, materials and new energy.
The company said it has already made preemptive investments in emerging technologies in various sectors, such as antibody treatments, artificial intelligence and big data, to dominate the technologies in advance and create synergy.
It will likely make additional profits in the near future because SK Pharmteco, its wholly owned contract manufacturing organization (CMO) subsidiary, has been mentioned as the next candidate for an IPO following SK Biopharmaceuticals.
Market observers expect SK Holdings will pay special dividends to its shareholders using the cash it has earned recently, given that the company has shared its earnings from investments with its stockholders.