SK Innovation shareholders approve plan to split off battery business
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[SEOUL] SK Innovation said on Thursday its shareholders had approved the company's proposal to separate its battery business into a new company.
The decision paves the way for the battery business, a supplier for Ford Motor, Hyundai Motor and among others, to potentially raise funds and go public to finance its high-cost production capacity expansion.
The unit, which will be launched on Oct 1, will first become SK Innovation's wholly-owned subsidiary tentatively named "SK Battery Co Ltd." More than 80 per cent of SK Innovation shareholders voted in favour of the plan, SK Innovation said in a statement.
South Korea's National Pension Service, SK Innovation's number two shareholder with an 8.05 per cent stake, on Tuesday voted against the split-off plan, citing concerns about damage to shareholder value.
Shares of SK Innovation were trading down 1.4 per cent versus a 0.5 per cent fall in the benchmark Kospi as of 0131 GMT.
REUTERS
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