South Korea's SK Innovation approves split of its battery business

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South Korea's SK Innovation approves split of its battery business

SEOUL Reuters - SK Innovation Co Ltd said that its shareholders on Thursday approved the company's proposal to separate its battery business in a new company.

The decision paves the way for the battery business, a supplier for Ford Motor Co, Hyundai Motor Co and among others to potentially raise funds and go public to finance its high-cost production capacity expansion.

The unit, which will be launched on Oct. 1, first became SK Innovation's wholly owned subsidiary tentatively called SK Battery Co Ltd. More than 80% of SK Innovation shareholders voted in favour of the plan, SK Innovation said in a statement.

Two shareholder with 8.05% stake voted against the split-off plan, on Tuesday citing concerns about damage to shareholder value.

Shares of SK Innovation trading down 1.4% versus a 0.5% slip in the benchmark KOSPI as of 0131 GMT.