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© Reuters.

SEOUL (Reuters] SK Innovation Co Ltd stated that on Thursday, its shareholders approved the plan to seperate its battery company into a new entity.

It allows the battery business (a supplier for Ford Motor (NYSE) Co, Hyundai Motor Co, among other companies), to possibly raise funds or go public to help finance the high-cost expansion of its production capacities.

The unit, which will be launched on Oct. 1, will first become SK Innovation’s wholly-owned subsidiary tentatively named “SK Battery Co Ltd.”

More than 80% of SK Innovation shareholders voted in favour of the plan, SK Innovation said in a statement.

On Tuesday, South Korea’s National Pension Service voted against the plan. This is because it fears that this would lead to a loss of shareholder value.

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

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