Business · Companies · 1 day ago
Buyer and officials discuss local commitments in SK Oceanplant sale
The Ocean Asset Management, a private equity fund manager, is set to become the largest shareholder of SK Oceanplant, a shipbuilding and offshore wind company in Goseong County, South Korea.
The sale involves SK Ecoplant’s entire 35.62% stake, valued at 410 billion won, with completion scheduled by the end of December.
South Gyeongsang Province and Goseong County are discussing six areas of local benefits with the buyer.
They say the buyer should honor a 2024 agreement to invest 950 billion won in a local industrial zone and employ 3,600 people.
The sides have agreed on keeping current employees, prioritizing local businesses, and giving local residents priority or extra consideration in hiring.
They also accepted proposals for school programs and local scholarships, but disagree on how to encourage employees who commute from other cities to settle in Goseong.
The buyer must submit an investment and employment plan to the province by October 16, while local officials are concerned that the sale could affect jobs and the industrial zone project.
Gyeongsangnam-do Province and Goseong County are negotiating six local-benefit commitments with The Ocean Asset Management over its acquisition of SK Oceanplant.
The parties have agreed on employee job succession, priority transactions with local businesses and priority hiring for local residents.
They also agreed to support a local school’s development as a global marine-specialty school and to provide scholarships.
They have not reached agreement on how to encourage employees who commute from other cities to settle in Goseong.
The local governments say the buyer should honor a 2024 investment agreement to invest 950 billion won and employ 3,600 people in the Yangchon-Yongjeong district.
- Who
- The Ocean Asset Management, Gyeongsangnam-do Province and Goseong County.
- What
- They are discussing six local-benefit commitments linked to The Ocean Asset Management’s acquisition of SK Oceanplant.
- When
- The negotiations were reported on October 11; the buyer is due to submit an investment and employment plan by October 16.
- Where
- Goseong County, South Korea, including the Yangchon-Yongjeong district.
- Why
- The local governments want the buyer to honor existing investment and employment commitments and protect the local economy.
This story does not have two clearly opposing sides.
No direct quotes in the coverage so far.
SK Oceanplant signed an investment agreement for 950 billion won in investment and 3,600 jobs in the Yangchon-Yongjeong district.
The government designated the Goseong County site as Gyeongsangnam-do’s first opportunity development zone.
SK Oceanplant’s largest shareholder selected a consortium led by The Ocean Asset Management as preferred bidder for the sale.
Goseong County began urging The Ocean Asset Management to honor the existing investment agreement and started discussions on local-benefit commitments.
Gyeongsangnam-do and Goseong County reported that discussions had produced agreement on several commitments but not on how to encourage commuting employees to settle locally.
The Ocean Asset Management is due to submit an investment and employment plan to the province.
- Agreed investment
- 950 billion won in the Yangchon-Yongjeong district
- Agreed employment target
- 3,600 people
- Sale price
- 410 billion won for SK Eco Plant’s 35.62% stake
- SK Oceanplant direct employees
- More than 700
- Local suppliers
- About 2,000 employees at 30 or more partner companies
Sources
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