SK E&S secures fund by selling stake in Chinese gas company

SEOUL -- SK E&S, a South Korean energy company involved in gas field development and power generation, has secured 1.81 trillion won ($1.6 billion) by selling its 10.25 percent stake in China Gas Holdings (CGH) through off-hour block trading. The stake sale is designed to improve the company's financial structure.

The block deal was made on April 16 in Hong Kong, SK E&S said in a regulatory filing on Friday. In September last year, the company sold a 3.3 percent stake worth 787 billion won in CGH, a Chinese company principally engaged in the distribution of natural gas.

The profitability of energy companies has seen a significant drop due to a novel coronavirus pandemic that weakened global consumption and demand.

SK E&S has invested more in the renewable energy sector. In November 2018, the company sold a 49 percent stake in its wholly-owned subsidiary, which runs a lucrative LNG power plant, to a Thai company.