Four Years Investment Payoff
SK Group has embarked on the sale of its stake in Londian Wason, the parent company of the world’s largest copper foil manufacturer Wason. This move comes approximately four years after its initial investment in 2019 and if successful it is expected to realize profits of around 1 trillion won (US$754.72 million).
According to investment banking industry sources on Aug. 31, SK Inc. has been in contact with domestic and foreign private equity funds (PEFs) to sell its stake in Londian Wason. Credit Suisse is leading the sale process. The stake to be sold is approximately 30 percent of the total holdings, and the transaction size is anticipated to be around 1 trillion won.
Londian Wason is a holding company with Wason, a manufacturer of copper foils, as its wholly owned subsidiary. Its largest shareholder is the Chinese investment firm D&R Group. In addition to SK Inc., several domestic investors, including Mirae Asset Global Investments and SV Investment, are significant shareholders.
Copper foil is a crucial material for the cathode of secondary batteries, which allows the flow of electricity. Wason’s major clients include global battery manufacturers such as LG Energy Solution, Samsung SDI, Panasonic, CATL, and BYD.
SK Inc. has become the second-largest shareholder in Londian Wason after D&R Group, following two investments in 2019 and 2020 totaling approximately 380 billion won. During these investments, SK Inc. evaluated Londian Wason’s corporate value at around 1 trillion won. Considering that the investment industry currently values Londian Wason at around 4 to 5 trillion won, the stake sale is expected to yield profits of approximately 1 trillion won.
Londian Wason had plans to go public on the Hong Kong or U.S. stock markets last year, but it postponed the listing due to market conditions. In the previous year, it selected CLSA, a Hong Kong-based brokerage, as the lead underwriter for the IPO. The targeted listing time frame is May of next year.