Seoul [South Korea], October 2 (ANI): SK Group Chairman Chey Tae-won will sell 944 billion won (USD 701 million) worth of shares in the holding company SK Inc. to fund the court-ordered property division in his divorce from former wife Roh Soh-yeong, according to a news report by The Korea Herald.

The Seoul High Court ordered Chey in July to pay that exact sum to Roh, the director of Art Center Nabi, as part of their division of assets. Chey appealed the ruling to the Supreme Court in August, later narrowing the scope of the appeal by accepting 700 billion won (USD ~513.8 million) of the award while challenging the remaining 244 billion won (USD ~179.1 million).

In a regulatory filing on Friday, SK Inc. disclosed that Chey, who serves as the firm's largest shareholder, will offload 1,653,924 shares, which represent a 2.3 per cent equity stake in the enterprise. The transactions will formally begin on November 2.

SK said the stake sale is intended to raise funds for Chey's personal financial needs.

Under the outlined divestment structure, 544 billion won (USD ~399.3 million) worth of shares will go to a strategic investor. The remaining 400 billion won (USD ~293.6 million) worth of stock will be deployed in price return swap transactions arranged with securities brokerages.

The company added that the strategic investor decided to take a stake in SK Inc. after considering the company's business competitiveness and long-term growth prospects.

The upcoming divestment will reduce Chey's personal holdings in the holding entity to 11,321,548 common shares from 12,975,472 shares. His individual ownership stake will consequently decrease to 15.5 per cent from 17.8 per cent. Furthermore, the combined controlling stake retained by Chey and his related parties will fall to 22.9 per cent from 25.2 per cent.

SK said the chairman will continue to focus on responsible management and efforts to enhance the company's corporate value despite the reduction in his stake.

The company said it will also proceed with its existing growth strategy, investment plans and shareholder value initiatives. (ANI)