|
|
Article: S. KOREAN CONGLOMERATES RIDING HOLDING COMPANY BOOM: ANALYSIS.
- Article from:
- AsiaPulse News
- Article date:
- September 19, 2007
CopyrightCOPYRIGHT 2007 Asia Pulse Pty Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
|
SEOUL, Sept 19 Asia Pulse - In a bold departure from a decades-old practice, SK Group announced a plan in mid-April to turn its flagship SK Corporation (KSE:003600) into a holding company in an effort to improve corporate governance.
Investors hailed the move and snapped up SK Corp. shares. The stock price of South Korea's top refiner soared as much as 31 per cent to 134,500 won (US$145) in just two-and-a-half months, bringing huge profits to its shareholders. SK Corp. was formally split into SK Holdings Co. and SK Energy Co. (KSE:096770) on July 3.
"The surge stemmed from investor expectations that the establishment of a holding company would streamline ...