SK Group Chairman Chey sells stake to Dell family office fund for $406 million

Business Recorder reported that SK Group Chairman Chey Tae-won has agreed to sell a 1.34 per cent holding in SK Inc to an investment vehicle tied to Michael Dell, the Dell Technologies founder. According to a regulatory filing published on Wednesday, the deal is valued at 544 billion won, or $406 million. The buyer is DFO Public Investments, L.P., a Delaware fund associated with DFO Management, which serves as the family office of Michael Dell.

The sale forms part of a wider plan by Chey to generate 944 billion won from share disposals, which will fund a divorce payment to his former wife. Earlier this month, SK Inc disclosed that he planned to dispose of 1.65 million shares, equal to a 2.26 per cent stake, for 944 billion won. Part of that total, 681,431 shares, will be transferred to Korea Investment & Securities for 400 billion won.

The Korea Corporate Governance Forum, an independent watchdog, warned that Chey and the buyers must disclose their holdings jointly if they informally agreed to vote together, with non-compliance breaching capital markets legislation in South Korea. It also said a strategic investor had hinted that the two sides' interests might be aligned, making the fund a joint holder alongside Chey. Dell Technologies, which has commercial ties with SK Hynix, is not the buyer, as the stake is being bought by a family fund.