Prostar Capital, which is now pushing to acquire Kyungnam Energy, turned out to be an SK Group-affiliated fund. Some raised doubts about the potential of a roundabout bidding, claiming that SK Group joined the bidding not through its energy subsidiary but through its offshore fund.
The Financial Supervisory Service’s e-disclosure system showed on February 10 that the Australian infrastructure fund Prostar Capital was registered as an affiliate of SK Group. A total of nine companies, including Prostar Capital Ltd., Prostar Capital Australia Pty Ltd, and Prostar Capital Management Ltd., were registered as Prostar-related affiliates.
Among them, Prostar Management Ltd., headquartered in the tax haven Cayman Islands, controls other Prostar companies, including Prostar Management located in the United States and Australia.
Some industry experts said, “It is difficult to figure out the flow of capital particularly for those investment companies headquartered in tax havens. It is difficult to understand why SK Group joined the domestic M&A deal not through its domestic affiliate but through an offshore fund.”