SK Networks in Euljiro, Seoul (Image courtesy of Yonhap)
SEOUL, Apr. 16 (Korea Bizwire) – SK Networks, a major South Korean conglomerate, has decided to sell its wholly owned car rental subsidiary, SK Rent-a-Car, as part of efforts to secure funds for its artificial intelligence (AI) growth initiatives.
In a regulatory filing on April 16, SK Networks announced that it has selected Affinity Equity Partners, a private equity firm, as the preferred bidder for the sale of SK Rent-a-Car. The two parties have signed a memorandum of understanding to commence negotiations on the terms of the transaction.
SK Networks stated that it is discussing the disposal of its entire 100% stake in SK Rent-a-Car. Although the company did not disclose a specific sale price, industry estimates suggest the deal could be valued at around 850 billion won.
“We have designated AI as our core growth area and plan to concentrate our resources in this field,” SK Networks explained in the filing. “The divestment of SK Rent-a-Car aims to stabilize our financial structure and secure funds necessary for this strategic shift.”
The company praised Affinity Equity Partners for demonstrating a strong commitment to acquiring SK Rent-a-Car during the preliminary bidding process, submitting a compelling proposal that included a fair market valuation and plans to retain the car rental unit’s employees.
An SK Networks official stated, “We will cooperate to ensure a smooth process, including due diligence, and intensify our efforts to develop an AI-centric business model and identify new growth engines.”
Kevin Lee (kevinlee@koreabizwire.com)
