Stonebridge Capital’s Investment in SK Incheon Petrochemical Co.

Stonebridge Capital invested KRW 800 billion in SK Energy to acquire a 10% stake (in RCPS) in the company and finance the spin-off of SK Incheon Petrochemical Co. (“SK Incheon”).  Stonebridge then redeemed its RCPS in SK Energy to acquire a 32% stake in SK Incheon.  Lee & Ko represented SK Energy in the above transaction which was completed in December 2014.

Stonebridge initially wished to invest in SK Incheon and not SK Energy.  However, because Stonebridge’s tracking shares were not recognized in Korea, it instead invested in the parent company first in order to finance the spin-off of the company’s petrochemical business and reinvestment in the latter.