Bio energy business sale in the works for SK Chemical

SK Chemical plans to sell off its bio energy business to a domestic private equity fund at 380 billion won ($321.7 million), according to a regulatory filing the company submitted Wednesday.

The company’s bio energy business division produces and sells bio diesels and bio fuel oil. It accounted for around 20 percent of SK Chemical’s annual revenue in 2018.

The deal’s counterpart is Hahn & Company, a Seoul-based private equity fund with working capital of 8.1 trillion won.

SK explained in a statement that the sell-off is intended to secure capital to focus investment on eco-friendly material and bio science - fields the company considers future growth engines. The two segments have enjoyed an internal push from SK since 2000.

The deal was approved at a board of directors meeting Wednesday and will be put to a shareholders’ vote on March 17.

By Song Kyoung-son