Shulou(Shulou.com)11/24 Report--

According to foreign media reports on August 19, SK On, an electric vehicle battery manufacturer owned by SK Innovation, has decided to accept a capital injection of up to 2 trillion won, or about US $1.5 billion, from South Korean consortia due to poor negotiations with foreign investment.

SK On's decision to accept capital injection from local consortia was first reported by the South Korean media. The consortium of capital injection is led by EastBridge Partners, a private equity fund, and Stellar Investment is involved.

South Korean media also mentioned in the report that the consortium led by EastBridge Partners valued SK On at more than 20 trillion won and that if their investment went smoothly, the consortium would acquire about 10 per cent of SK On.

As for SK On's new round of fund-raising, South Korean media reported that they initially planned to raise 4 trillion won for the expansion of overseas factories, of which 3 trillion won was raised from foreign investors and 1 trillion won from domestic investors.

South Korean media reported that in order to raise 3 trillion won from abroad, SK On negotiated with Carlyle, Blackstone, KKR and GIC, but KKR and GIC successively withdrew from the negotiations, and negotiations with Carlyle and Blackstone were shaky, forcing SK On to accept capital injection from domestic investors.

From South Korean media reports, until the beginning of this year, foreign investors are still interested in SK On, but due to the sudden change in the market environment, their attitude has also changed. As inflation intensifies and interest rates rise, so do expected returns for global investors.

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