Samsung shares news of President Lee Kun-hee's death: report

Samsung shares news of President Lee Kun-hee’s death: report

SEOUL – Shares of Samsung Electronics Co Ltd and its subsidiaries rose on Monday after the death of President Lee Kun-hee earlier in the day, sparking hopes for a restructuring and sell-off, analysts said.

SAMSUNG UNVEILS NEW DEVICES, HOLIDAYS NEXT Foldable Smartphone

Investors are betting that such measures would be required to pay a heavy inheritance tax, estimated at about 10 trillion won ($ 8.9 billion) per share, although analysts were divided over what the moves were.

Shares of Samsung C&T and Samsung Life Insurance rose 21.2% and 15.7% respectively, while shares of Samsung BioLogics, Samsung SDS and Samsung Engineering also rose.

Stocks in this article

“Inheritance tax is outrageous, so family members may have no choice but to sell shares in some non-core companies, such as Samsung Life,” said NH Investment Securities analyst Kim Dong-yang.

Investors have long expected a turmoil in the event of Lee’s death, hoping that gains from any restructuring will strengthen the de facto corporate portfolio of control of Samsung C&T by Samsung Electronics jewelry, such as Samsung C&T, which is buying the stake. of a subsidiary to the technology giant.

FILE – On April 22, 2008, the archive photo, Samsung Group President Lee Kun-hee, right, arrives at a press conference at the Samsung Group headquarters in Seoul, South Korea. Lee, the patient president of Samsung Electronics who turned the little te

Son and heir Jay Y. Lee holds a 17.3% stake in Samsung C&T, which holds a 5.01% stake in Samsung Electronics, the world leader in smartphones and memory chips. Samsung C&T also has a 19.3% stake in Samsung Life, the No. 2 shareholder in Samsung Electronics.

GET FOX BUSINESS MOVE HERE

“At this point, it is difficult to wait for the Samsung Group to embark on a restructuring process, as Jay Y. Lee continues to face trials, making it difficult for the group’s management to initiate organizational change,” said KB Securities analyst Jeong Dong-ik said.

Lee is facing two separate trials for suspected accounting fraud and stock price manipulation linked to the 2015 merger and his role in a bribery scandal that sparked the ouster of former South Korean President Park Geun-hye.

Lee’s father was the richest shareholder in South Korea, with holdings of 4.18% of Samsung Electronics and 0.08% of the preferred stock worth about $ 15 trillion ($ 13.3 billion). in total.

CLICK HERE TO READ MORE AT FOX BUSINESSES

It also held a 20.76% stake in Samsung Life worth about 2.6 trillion won, and a 2.88% stake in Samsung C&T worth about 564 billion won since Friday’s close.

Leave a Reply

Your email address will not be published. Required fields are marked *