{"id":25005,"date":"2017-03-24T05:44:12","date_gmt":"2017-03-24T05:44:12","guid":{"rendered":"http:\/\/www.biphoo.com\/bipnews\/?p=25005"},"modified":"2017-03-24T05:44:12","modified_gmt":"2017-03-24T05:44:12","slug":"samsung-elec-signals-no-holding-company-move-now","status":"publish","type":"post","link":"https:\/\/www.biphoo.com\/bipnews\/business\/samsung-elec-signals-no-holding-company-move-now.html","title":{"rendered":"Samsung Elec signals no holding company move for now"},"content":{"rendered":"

\n\tSamsung Elec signals no holding company move for now<\/span><\/span><\/strong><\/span>
\n<\/h2>\n

\n\tSamsung Elec signals no holding company move for now:- Samsung Electronics Co Ltd (005930.KS) said on Friday it will be difficult to adopt a holding company structure at this time, rejecting U.S. activist hedge fund Elliott Management's proposal and ruling out for now a long-anticipated succession move.<\/span><\/span><\/span>\n<\/p>\n

\n\tInvestors had expected the global leader in smartphones and memory chips to adopt a holding company structure, as the founding Lee family tries to solidify its control of the Samsung Group [SAGR.UL] flagship ahead of a leadership succession.<\/span><\/span><\/span>\n<\/p>\n

\n\tBut Chief Executive Kwon Oh-hyun told the annual shareholder meeting this was unlikely at this stage, giving investors their first insight into how the South Korean tech giant is approaching a potential restructuring amid a political scandal that has embroiled Samsung Group [SAGR.UL] chief Jay Y. Lee.<\/span><\/span><\/span>\n<\/p>\n

\n\t"There are negative effects that would arise from transitioning to a holding company so it does not appear it will be easy to do so at present," Kwon said, without elaborating what those negatives were.<\/span><\/span><\/span>\n<\/p>\n

\n\tThe comments sent shares of Samsung C&T Corp (028260.KS) down nearly 7 percent. As Samsung Group's de facto holding company, it was seen as a likely beneficiary if Samsung Electronics adopted a holding structure.<\/span><\/span><\/span>\n<\/p>\n

\n\tSome analysts believed Samsung's Lee family members would seek to merge C&T, which they firmly control, with the Samsung Electronics holding company as the final succession step.<\/span><\/span><\/span>\n<\/p>\n

\n\t"Investors have been hoping for change for Samsung Electronics and more broadly Samsung Group, but this suggests that process will be delayed," said CJ Heo, a fund manager at Alpha Asset Management.<\/span><\/span><\/span>\n<\/p>\n

\n\tElliott in October called for the firm to adopt a holding company structure by splitting itself in two and paying out a 30 trillion won ($26.75 billion) special dividend.<\/span><\/span><\/span>\n<\/p>\n

\n\tSamsung announced a review in November but until now has maintained a neutral stance on the holding structure issue.<\/span><\/span><\/span>\n<\/p>\n

\n\tAn Elliott spokesman declined to comment.<\/span><\/span><\/span>\n<\/p>\n

\n\tSome investors said the mooted restructuring appears to have been delayed with Lee's arrest on charges of bribery, embezzlement and other offences in a corruption scandal that has already led to the removal of President Park Geun-hye from office.<\/span><\/span><\/span>\n<\/p>\n

\n\tThe 48-year-old leader of Samsung Group and Samsung Electronics' vice chairman could face more than 20 years in prison. He denies the allegations.<\/span><\/span><\/span>\n<\/p>\n

\n\tSamsung Group patriarch Lee Kun-hee remains incapacitated following a May 2014 heart attack. His children face a multi-billion dollar inheritance tax when he dies, providing an impetus to quickly strengthen their grip on key affiliates such as Samsung Electronics.<\/span><\/span><\/span>\n<\/p>\n

\n\tInvestors believe a restructuring could streamline the company, improve its governance and boost its value.<\/span><\/span><\/span>\n<\/p>\n

\n\tSource:- http:\/\/www.reuters.com\/article\/us-samsung-elec-agm-idUSKBN16V015<\/span><\/span><\/span><\/p>\n

\n\t\t\t
\n\t\t\t <\/div><\/div>\n\t\t