SK Holdings sells part of its stake in ESR Cayman

Home > Business > Industry

print dictionary print

SK Holdings sells part of its stake in ESR Cayman

Logo of SK Group.

Logo of SK Group.

SK Holdings has sold part of its stake in e-Shang Redwood Group (ESR) Cayman, a Hong Kong-based warehouse developer, for 480 billion won ($409 million) to unidentified investors, the company said on Thursday.
The holdings unit of SK offloaded 140 million shares, a 4.6 percent stake, in ESR for 22.5 Hong Kong dollars ($2.90) per share in a block deal.
After the sale, SK will still hold a 6.4 percent stake in the logistics company, worth around 740 billion won based on ESR’s closing prices as of Sept. 16.
The sale allowed the holdings company to recoup the initial investment put into the developer as it invested around 490 billion won from 2017 to 2018.
The value of ESR shares has more than doubled since that investment, especially after an initial public offering on the Hong Kong Exchange last year.
The surging number of packages handled by e-commerce players boosted prospects for logistics operators like ESR. The rising demand propelled ESR’s stock price 47 percent higher from the initial offering price as of Sept. 16, according to SK.
The proceeds, it said, will be used to invest in promising industry sectors.
“[SK] will make a virtuous cycle by investing the earnings from the sales into high-growth sectors,” the company said in a statement. “SK has funded diverse segments including biopharmaceutical, materials and renewable energy based on its expertise on investment."
The unit’s holdings include ride-hailing start-up Grab, Lingbao Wason Copper Foil, a leading copper foil manufacturer in China, and Visible Patient, a French start-up focusing on health care artificial intelligence technology.
Founded by New York-based private equity fund Warburg Pincus, ESR builds and operates large-scale logistics properties. Its centers total around 270 worldwide, and major tenants include China’s and, Tokyo-based furniture maker Askul, French retailer Carrefour, German rail operator DB Schenker, German automotive group Daimler and Swedish clothing brand H&M.

More in Industry

Booze boom

Move over Federer

Hanjin KAL slams largest shareholder, accusing it of peddling lies

Tech firms brief president on state of AI research

Dongsuh recognizes female authors at Scent of Life Awards

Log in to Twitter or Facebook account to connect
with the Korea JoongAng Daily
help-image Social comment?
lock icon

To write comments, please log in to one of the accounts.

Standards Board Policy (0/250자)

What’s Popular Now