Shareholders of SK Holdings and SK C&C on Friday approved the proposed merger between the two companies, paving the way for SK Group, the nation’s third-largest conglomerate, to streamline its business structure and reportedly strengthen the influence of the de facto owner family that includes group chairman Chey Tae-won.

Following the approval, a new entity ― retaining the name SK Holdings ― is set to be launched on Aug. 1. Its asset value is estimated to reach 13.2 trillion won ($12 billion).

“The new holding company will ramp up efforts to meet shareholders’ expectations by achieving 200 trillion won in sales and 10 trillion won in profits by 2020,” said SK Holdings CEO Cho Dae-sik.

The approval was largely expected despite opposition by the National Pension Service ― the nation’s largest institutional investor with a 7.2 percent stake in SK Holdings ― which claimed that the share-swap ratio could hurt shareholders’ interests.

The swap ratio between SK Holdings and SK C&C was set at 0.75:1.

During Friday’s vote, most of shareholders voted in favor of the merger plan except the pension fund and some minority investors.

Group chief Chey Tae-won currently holds a 32.9 percent stake in SK C&C, while his stake in SK Holdings stands at only 0.02 percent.

His stake in the new entity will reduce to 23.2 percent, but his influence throughout SK companies is expected to get boosted.

The owner family, including Chey, will hold 30.6 percent stake in the new holding company.

Investors have paid keen attention to the NPS’ stance on the SK deal as it holds the casting vote in the proposed merger between Samsung C&T and Cheil Industries.

Samsung Group, the nation’s largest conglomerate, has been engaged in a proxy fight with U.S. hedge fund Elliott Associates to win more support from shareholders at an upcoming vote planned on July 17.

By Lee Ji-yoon (jylee@heraldcorp.com)