SKC sells polyurethane subsidiary to equity firm in $304M deal

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SKC sells polyurethane subsidiary to equity firm in $304M deal

Published: 13 Oct. 2023, 13:08 Updated: 13 Oct. 2023, 13:44

SHIN HA-NEE
shin.hanee@joongang.co.kr

SKC headquarters in central Seoul [SKC]

SKC is selling its petrochemical subsidiary to a private equity firm at the price of 410.3 billion won ($304.1 million) in a bid to streamline its portfolio with a focus on semiconductor and EV battery materials.

The chemical material supplier’s board of directors approved the decision to sell 100 percent shares of SK pucore, a polyurethane manufacturer, to Glenwood Private Equity, a Seoul-based private equity firm, on Thursday.

The sell-off deal will also include SKC’s optical polyurethane unit.

SKC cited “investment expansion on growth businesses in ESG sector” for the sale in a regulatory filing.

ESG is a shorthand for prioritizing environmental, social and governance factors, an investment principle and strategy adopted by major corporations around the globe.

Polyurethane is a petrochemical-based material used to produce non-biodegradable plastic products. SK pucore produces polyol, which is a feedstock for polyurethanes.

SKC is prioritizing environment-friendlier businesses, such as EV battery materials and biodegradable plastics. The company has recently made an equity investment in a U.S. chip packaging company Chipletz as well.

“We will drive performance by building a strong foundation for global expansion and future growth, with a focus on EV batteries, semiconductors and environment-friendly businesses,” an SKC spokesperson said.

The stock purchase agreement for SK pucore is set to be closed within October, and the sell-off will be completed by the end of this year.

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]