SK Ocean Plant’s sale expected to fetch 500 Bil. Won amid broader Asset Divestment Plans

SK Ecoplant is planning to sell its offshore wind power subsidiary, SK Ocean Plant, as part of a broader restructuring effort. The company is currently in discussions with potential buyers, including large private equity funds, with the expected sale price for SK Ocean Plant estimated to be around 500 billion won. This development comes as SK Ecoplant seeks to optimize its portfolio by divesting certain assets, including its waste incineration, landfill, and water treatment companies, Renewus and Renewon.

SK Ocean Plant, formerly known as Samkang M&T, was acquired and renamed by SK Ecoplant in November 2021. The subsidiary specializes in manufacturing substructures for offshore wind turbines, marine plants, and special vessels. SK Ecoplant invested 541.9 billion won in offshore wind power in 2022 alone. However, due to delays in a 350 billion won offshore wind development project in Taiwan, SK Ocean Plant recorded a revenue of 661.9 billion won and an operating profit of 41.4 billion won last year, reflecting a decrease compared to the previous year.

The decision to sell SK Ocean Plant is part of SK Ecoplant’s broader strategy to focus on its core competencies and improve financial performance. The company has been actively engaging with acquisition candidates, and a representative from a private equity fund noted, “We have been offered a kind of bonus point in the selection process if we acquire both the environmental business subsidiaries and the offshore wind power subsidiary from SK Ecoplant.”

The sale of SK Ocean Plant is expected to attract significant interest from private equity funds, which are keen on acquiring and managing companies with growth potential in the renewable energy sector.

In addition to the sale of SK Ocean Plant, SK Ecoplant is also pursuing the sale of its waste management subsidiaries, with some already sold. The company is considering potential sales to improve financial performance further. An industry insider commented on the high valuation of industrial gas companies, implying potential interest in similar assets.

The restructuring efforts are expected to improve SK Ecoplant’s financial performance, with the industry anticipating better results this year. SK Ocean Plant is projected to secure up to 300 billion won in orders from Europe, aside from its ongoing projects in Taiwan. This anticipated growth in orders highlights the subsidiary’s strong market position and the potential value it offers to prospective buyers.

Source: Businesskorea