Global investment firm KKR has invested KRW2.4trn (€1.8bn), on behalf of its Asia Pacific infrastructure fund in South Korean energy company SK E&S.
KKR said the investment was made via the acquisition of SK E&S’ newly issued redeemable convertible preferred shares to help the energy firm accelerate its “growth and transformation into a global clean energy solution provider”.
The investment will provide KKR with an opportunity to receive cash or in-kind redemption as an option for repayment in the future paired with the possibility of converting into common shares of SK E&S.
Established in 1999, SK E&S engages in a range of businesses, including upstream such as overseas gas field development and downstream such as power generation, district energy, and city gas distribution. SK E&S has been operating a city gas business which distributes natural gas to customers in cities and rural areas across eight regions in South Korea.
The transaction marks KKR’s latest investment in South Korea and builds on its track record as an active investor across asset classes including infrastructure, private equity, real estate and credit.
David Luboff, the head of Asia Pacific infrastructure at KKR, said: “Korea is a key part of KKR’s Asia infrastructure strategy. It is home to many companies with great potential for growth both domestically and abroad.
“We look to continue investing in compelling infrastructure opportunities where we can leverage KKR’s global experience and networks to partner with Korean businesses to achieve their transformations.”