In today’s briefing:
- SK Innovation & SK E&S: Summary of the Controversy Surrounding the Merger Ratio
- The Beat Ideas- Petronet LNG: Driving Growth in India’s Natural Gas Sector
SK Innovation & SK E&S: Summary of the Controversy Surrounding the Merger Ratio
- Interest in this merger is emerging from an unexpected angle, especially regarding the merger ratio’s fairness. There’s a risk it could unfavorably affect SK Innovation’s stock price.
- SK Innovation at ₩108,000/share; SK E&S at ₩290,000/share based on strong profits. SK plans ratios around 1.3x total value and 2.7x per share. SK Inc may reach mid-70% stake post-merger.
- SK Innovation’s stock may face short-term decline. Securing shareholder approval, with SK Inc at 36%, overseas investors 22%, local institutions 15%, local retail 20%, and NPS 7%, poses challenges.
The Beat Ideas- Petronet LNG: Driving Growth in India’s Natural Gas Sector
- Currently, the share of natural gas in energy basket is just 6.7%, Which India is aiming for 15% by 2030.
- Capex in Place- expanding the Dahej Plant, Petchem facility(20000Cr) will be operational in 4-5 years, Kochi utilization will improve
- 20% Volume Growth expected by Management, with a rising LNG portion in overall Gas Consumption in India.
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