SK Inc., the investment-specialized holding entity of SK Group, is paying out its hitherto highest interim dividend of 1,500 won ($1.30) apiece to share benefits from IPOs of SK family members and equity investments.
The Korean company disclosed Wednesday its board of directors approved a plan to dole out a midyear dividend of 1,500 won per both common share and preferred share, totaling 79.3 billion won. The total amount is 50 percent more than what it had paid out last year. Payout is scheduled for Aug 20.
On Thursday morning, SK shares gained 1.85 percent to trade at 275,000 won in Seoul.
The holding company has been increasing interim payouts since 2018. Its full-year dividend payout also has risen continuously, climbing from 208.7 billion won in 2016 to 370.1 billion won in 2020.
SK`s generous dividend payouts largely owe to its successful stake investments and initial public offerings of group companies that have allowed it to earn handsome profits.
The company last year invested in China’s largest copper foil company Lingbao Wason Copper Foil, hyper-scale data center solution provider Chindata Group, and biotech firm Roivant Sciences.
It is also sharing part of the earnings from SK Biopharmaceuticals’s IPO and the partial sale of its stakes in global logistics firm ESR, said the company.
SK promised shareholders that it will focus investment efforts on future growth engines under four key themes of advanced materials, biotech, green and digital.
SK earlier this year became the largest shareholder of U.S-based hydrogen fuel-cell producer Plug Power and acquired French gene and cell treatment provider Yposkesi and Korean electric vehicle charger maker Signet EV. It is also actively expanding investment in other high growth potential sectors such as EV battery materials and power semiconductors.
Moreover, the holding company has a series of its units’ IPOs lined up until 2023, which could deliver sizable gains, observed Lee Seung-woong, an analyst at eBest Investment & Securities.
By Choi Keun-do and Cho Jeehyun
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