IMM Credit Solution, a subsidiary of IMM Private Equity (IMM PE) is wrapping up its acquisition of 40 percent in SK Lubricants Co. by the end of this month to become the second largest shareholder in the industry No. 1.

IMM Credit Solution will complete its payment for the stake purchase valued at 1.12 trillion won ($973.4 million) by the end of this month, according to industry sources on Tuesday.

IMM will pool half of the sum from some major institutional investors including MG Community Credit Cooperatives, Military Mutual Aid Association, National Agricultural Cooperative Federation and National Credit Union Federation of Korea. The remaining half will be financed via acquisition loans.

Investors expect stable profits from the world’s leading manufacturer of lubricants for electric vehicles.

SK Lubricants has been supplying EV lubricants to finished car makers since 2013. SK Innovation, the country’s oil refinery and battery company, was selling off some of its stake to raise cash for investments.

“SK Lubricants not only has a dominant share in the lubricants market for conventional cars but its presence in the eco-friendly market is also strong,” said an official from an institution.

The stake purchase is the first investment of IMM Credit Solution since its foundation in early 2021.

By Kang Woo-seok and Choi Mira

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]