SK will issue approximately KRW 8.7 billion in zero-interest private convertible bonds (CB) to acquire a stake in a Malaysian mobility company.

On July 31, SK announced through a regulatory filing that it held a board of directors meeting and resolved to issue 'the 1st Unregistered Unsecured Private Convertible Bonds.' The total issuance size of these convertible bonds is KRW 8,700,600,000, and they will be issued under zero-interest terms with both the coupon rate and yield to maturity set at 0%.

■ Purpose: 100% Acquisition of Securities of Another Corporation The raised funds will be entirely used to acquire securities of another corporation. The acquisition target is 'Socar Mobility Malaysia Sdn. Bhd.,' a Malaysian car rental company. SK explained that the decision on whether to proceed with the transaction and the purchase price was determined through consultations with the counterparty.

These convertible bonds will be issued through a private placement, with two investors: Eastbridge Asia Private Investment Partnership (KRW 5,804 million) and Eugene Smart Mobility Private Investment Partnership (KRW 2,902 million).

■ Conversion Price of KRW 544,785 per Share The conversion price per share has been set at KRW 544,785. If all conversion rights are exercised, 15,970 new common shares will be issued, representing a 0.02% stake in the total number of currently issued shares (73,068,838 shares). Conversion requests can be made from August 18, 2027, to August 10, 2028.

■ Maturity in 2028, Early Redemption Request Possible The maturity date is August 18, 2028. The company plans to make a lump-sum repayment of 100% of the principal for the convertible bonds held until maturity.

Additionally, investors may request early redemption every three months starting from August 18, 2027, which marks one year from the issuance date. If the company proceeds with early redemption, it will pay 100% of the principal, with an early redemption yield of 0% on an annual compound basis.

Meanwhile, SK stated that since these convertible bonds are issued through a private placement, they are not subject to securities registration statement filing requirements.