Maneuver at Samsung strengthens heir's influence
Updated: 2015-05-27 07:18
By Associated Press(China Daily USA)
|
|||||||||
Two key Samsung companies are merging in a step toward ensuring the son of the group's ailing chairman inherits control of the theme parks to smartphones conglomerate.
Samsung said on Tuesday that its de facto holding company Cheil Industries Inc will acquire Samsung C&T Corp by offering 0.35 new Cheil shares for every Samsung C&T share.
The move, to be completed by Sept 1, requires shareholder approval, which is expected. The combined entity will be named Samsung C&T.
Analysts say the transaction will give Samsung heir Lee Jae-yong a big say in the conglomerate including its crown jewel Samsung Electronics Co.
"Samsung Electronics is at the core of this event," said Park Ju-gun, president at CEOScore, a private corporate watchdog. "If Lee Jae-yong controls C&T, he can secure control over Samsung Electronics."
The corporate maneuvering reflects that the Lee family's influence over Samsung Electronics through a life insurance company was at risk as the South Korean parliament is set to pass a law that restricts finance companies from controlling non-finance companies.
Lee, his father Lee Kun-hee and other family members have a small direct stake in Samsung Electronics but have been able to exert influence through cross shareholdings in affiliated companies, the most significant of which was Samsung Life Insurance. Altogether, they control about 29 percent of Samsung Electronics shares, which is the largest voting bloc.
Lee Kun-hee, 73, who remains chairman at Samsung Electronics, has been hospitalized for more than a year after suffering a heart attack in May 2014. Lee Jae-yong earlier this month took over his father's roles in two Samsung charitable foundations.
The Lee family will likely take additional steps to enlarge C&T's stake Samsung Electronics as a lynchpin of the cross shareholdings, said Park. It currently owns 4.1 percent of the electronics giant.
Lee, who is vice-chairman at Samsung Electronics, will own 16.5 percent of the new C&T and be its largest shareholder. The Lee family's direct stake in the combined entity, including that of Lee's father and his sisters, will become 30.4 percent. Samsung's affiliated companies will own another 8.8 percent, giving the family nearly a 40 percent stake overall in C&T.
Visitors walk toward an entrance at the Everland Resort, operated by Cheil Industries Inc, in Yongin, South Korea. Samsung said on Tuesday that its de facto holding company Cheil Industries Inc will acquire Samsung C&T Corp.Seongjoon Cho / Bloomberg |
(China Daily USA 05/27/2015 page16)
- California oil spill takes toll on marine mammals
- Ten photos you don't wanna miss - May 27
- Family photos for mountain-dwellers
- A young part-time chauffeur on the road
- Death toll from heat wave in India nears 800
- Tech giants shine on Intl Big Data Expo 2015
- Premier Li urges production capacity co-op between China, LatAm
- US honors war dead on Memorial Day
Most Viewed
Editor's Picks
Premier Li embarks on Latin America visit |
What do we know about AIIB |
Full coverage of Boao Forum for Asia |
Annual legislative and political advisory sessions |
Spring Festival trends reflect a changing China |
Patent applications lead the world |
Today's Top News
China cautions US over
South China Sea
China, Cuba emphasize confidence
Storms kill 16 in Texas, Oklahoma; Houston flooded
Obama to host South Korea's Park in mid-June
California oil spill takes toll on marine mammals
China issues first white paper on military strategy
China, Chile ink multi-billion-USD currency swap deal
Cleveland, US Justice Dept reach settlement over police
US Weekly
Geared to go |
The place to be |