SK Networks incorporates SK Rent-A-Car fully
autodaily.co.kr, 21 Aug '23
SK Networks has decided to incorporate SK Rent-A-Car as a 100% subsidiary.
The two companies held a board meeting on the 18th and announced that SK Networks had secured a 100% stake in SK Rent-A-Car and incorporated it as a wholly owned subsidiary through a stock tender offer and a comprehensive stock swap.
Currently, SK networks owns 72.9% of SK Rent-A-Car.
SK Rent-a-car was launched as an integrated corporation by SK Networks' acquisition of AJ Rent-a-car in 2019 and combining SK Networks' car rental business headquarters.
SK Rent-a-Car introduced Direct, an online long-term rental car channel, and Tago Pay, a mileage-based rate plan product, and pioneered the eco-friendly car rental market centred on electric vehicles, leading innovation in the industry.
In addition, it has raised the level of customer-oriented mobility services by expanding its independently developed integrated vehicle management solution 'Smart Link' to electric vehicles.
In the case of SK Networks, as the issue of overlapping listing with SK Rent-A-Car, which holds more than 70% of the shares, is resolved, it is expected to improve the corporate value as a business-type investment company.
To protect shareholder value of SK Rent-A-Car, SK Networks will conduct a tender offer for shares of SK Rent-a-Car at 13,500 won (US$ 10) per share from the 21st to the 11th of next month, and in the case of remaining shares, a small-scale stock exchange process will be carried out through a resolution of the board of directors.
SK Rent-A-Car will hold an extraordinary shareholders' meeting within the year. SK Rent-A-Car is scheduled to be delisted at the end of January after the share exchange is completed early next year by following the follow-up procedures upon approval of the general shareholders' meeting.
After the delisting, SK Rent-a-Car plans to promote efficiency by business process and set future growth strategy directions to further strengthen its business competitiveness.
An SK Networks official said, "We will incorporate SK Rent-a-Car as a wholly owned subsidiary and increase our business competitiveness to ultimately increase the corporate value of both companies."
