Samsung Subsidiary To Sell $1B Stake In Electronics Business
Subsidiary company, Samsung Life Insurance, has revealed it intends to sell off US$1.1 billion (1.2 trillion won) worth of shares in Samsung Electronics. The block deal represents part of its 8.3% stake in Samsung Electronics, and follows rising regulatory pressure to streamline the company’s ownership structure.
In conjunction with affiliate, Samsung Fire & Marine Insurance, Life will sell 0.45% of its Electronics stake, before Korea’s stock market opens on Thursday.
Head of Korea’s antitrust committee, Kim Sang-jo, warns the current ownership structure is “not sustainable”.
Sang-jo asserts Samsung Life must provide a plan on how its will sell down its Electronics stake by the end of the year.
Samsung Life’s stake in Samsung Electronics is reportedly worth around US$26 billion, and follows regulatory pressure to reduce its ownership below 3%.
Shares in Samsung Electronics reportedly fell 3.5% on Wednesday, whilst Samsung Life spiked 0.9%.