According to reports going around in the South Korean tech market, South Korea's tech giant Samsung Electronics Co Ltd is considering splitting itself into two. The idea has reportedly been proposed by Elliott Management, the United States based activist hedge fund.

A split has been suggested because it would allow the company's founding Lee family to strengthen their position in the global Smartphone leader brand, which is considered as the crowing jewellery of the humongous Samsung Group business empire. The split was suggested last month by the Elliott Management so as to boost their shareholder value.

Though the company has formally denied commenting on the issue, but a Samsung's board of directors has been called on for tomorrow. Whether it is to decide on Elliott's proposal of splitting the company into two, isn't clear yet.

Further, reports also suggest that the Korea Exchange separately has asked Samsung to comment on whether it is planning a spinoff by 6pm (0900 GMT).

According to a report in the Seoul Economic Daily, Elliott Management has suggested the company to divide itself into a holding vehicle for ownership purposes and an operating company, pay a $26 billion special dividend, promise to return at least 75% of the free cash flow to investors and also agree upon appointing some independent directors.

While Samsung Group and the Lee family haven't said a word on the company's restructuring plans, but there's no denying the fact that the conglomerate's reorganization efforts have been on a fast pace since Jay Y. Lee took over the company in May 2014.

The tech giant has sold non-core assets while going through a merger of two major affiliates last year so as to consolidate stakes in the key affiliates under a company controlled by Jay Y. Lee and his two real sisters, as the founding Lee family wants to secure a stable and secure transfer of control.

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