KKR Invests via Redeemable Convertible Preferred Shares in SK E&S

Posted on 12/22/2022

Private equity giant KKR & Co Inc. entered into an agreement with South Korean energy company, SK E&S Co., Ltd. to acquire SK E&S’ newly issued redeemable convertible preferred shares (RCPS) worth 735 billion won (US$ 577 million). The transaction marks KKR’s second investment in SK E&S through the purchase of newly issued RCPS, following an initial investment in November 2021, which has been used by SK E&S to accelerate its growth and transformation into a global clean energy solutions provider. According to SK E&S, SK E&S now looks to secure liquidity to de-lever as well as capture post-pandemic opportunities across energy and renewable assets.

Established in 1999, SK E&S is a member of the SK Group, one of South Korea’s largest conglomerates. SK E&S engages in a range of businesses, including upstream interests such as overseas gas field development and downstream instreams such as power generation, district energy, and city gas.

KKR makes its investment from its Asia Pacific infrastructure strategy, which looks to support infrastructure assets and businesses with growth potential across developed and developing Asian markets, including South Korea, India, Philippines, Japan, Australia, New Zealand, and China.

In 2021, SK E&S invested US$ 1.4 billion to develop Australia’s offshore Barossa gas field.

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