SK Innovation Raises $987m from Sales of 40% in SK Lubricants to IMM Private Equity

South Korea’s SK Innovation on Wednesday okayed a deal to sell its 40 percent stake in SK Lubricants to IMM Private Equity for $987.4m.

The exchange places the Seoul-based PEF as the second largest shareholder in the world’s largest premium base oil maker.

IMM PE is taking over 40 percent, less than 49 percent stake speculated earlier. The deal will be made through IMM PE’s newly launched unit IMM Credit Solution.

SK Innovation will complete the stake handover by July 30, adding to its ammunition to expand EV battery capacity.

The company still holds command over SK Lubricants with a 60 percent stake.

SK Lubricants is the world’s largest high-quality Group III base oil maker. Last year, it earned around $237m in operating income on sales of around $2.4bn.

SK Innovation shares rose 1.85 percent to close at around $248 in Seoul on Thursday.