South Korea’s refiner and battery maker SK Innovation Co. will divest some of its stake in wholly-owned SK Global Chemical Co. to shift more focus to eco-friendly energy sourcing.

According to multiple sources from the investment industry, SK Innovation has hired JP Morgan in November to advise on the sale of its stake under 49 percent in the basic chemical producer, hopefully to a foreign company for strategic partnership.

Shares of SK Innovation closed 0.18 percent higher at 284,500 won ($256.19) on Tuesday. SK Global Chemical is not listed.

SK Global Chemical produces ethylene, propylene, benzene, and xylene with petroleum naphta derived from the refining of crude oil by SK Energy. It generates 500 billion won in operating profit on sales of around 10 trillion won a year.

SK Innovation has said no concrete progress has been made in the M&A scheme, but added it considers a joint venture with a multinational entity most desirable.

The divesture is to raise funds under SK Group’s goal to enhance Green Balance 2030, its initiative to enhance environmentally-friendly portfolio.

By Jin Young-tae and Lee Eun-joo

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