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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] The planned sale of SK Oceanplant, an offshore wind power subsidiary of SK Ecoplant, has stalled nearly six months after news of the deal first broke in late February. No preliminary bidding has taken place, with market uncertainty over the growth potential of offshore wind — once considered a key clean energy source — dampened by renewed focus on nuclear power, particularly small modular reactors (SMRs). Analysts say a wide gap remains between buyer and seller expectations on valuation.
According to investment banking sources on August 10, SK Ecoplant had initially planned to receive preliminary bids for SK Oceanplant earlier this month but informed prospective buyers of a postponement. Reported bidders include Affirma Capital’s credit arm, Affirma Credit Solutions Korea, and one other potential acquirer. SK Ecoplant has said it will monitor market conditions before announcing a revised timetable, leaving the sale process — in motion since February — effectively at a standstill.
The sale involves SK Ecoplant’s 37.6% stake in SK Oceanplant. Based on the company’s recent market capitalization of KRW 1.3 trillion, SK is seeking a price in the KRW 500 billion range for its stake, including a management control premium. If combined with the 20.26% stake held by Song Moo-seok, former CEO of Samkang M&T, and his family, the total 57.86% controlling stake could fetch up to KRW 800 billion.
Potential buyers remain cautious, citing the volatility of SK Oceanplant’s earnings. The company posted revenue of KRW 925.8 billion and operating profit of KRW 75.6 billion in 2023, but last year’s delays in offshore wind projects caused figures to plunge to KRW 662 billion in revenue and KRW 41.5 billion in operating profit.
The sell-side, however, argues the company’s valuation should factor in both the stable cash flow from its naval vessel and specialty ship business — which accounted for KRW 177.4 billion, or 69% of its KRW 257.1 billion first-quarter revenue — and the future growth potential of offshore wind, which contributed 27% in the same period.
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
