Cheil Worldwide says unaware of stake sale talks (updated)

Cheil Worldwide

17/02/2016 02:57

* Cheil says not aware of stake sale talks for top 
shareholders 
    * Samsung C&T says in talks with global agencies 
    * Media report says Samsung Group seeks to divest from Cheil 
 
 (Updates with Cheil reaction to stake sale report, background) 
    SEOUL, Feb 17 (Reuters) - Cheil Worldwide Inc  030000.KS , 
the advertising arm of South Korean conglomerate Samsung Group, 
said on Wednesday its key shareholder was discussing cooperation 
with global agencies but it was unaware of any talks on stake 
sale.  
     Cheil, in a regulatory filing, did not name the shareholder 
and said the talks had so far not led to any concrete results. A 
spokeswoman for Samsung C&T Corp  028260.KS , which holds a 
12.64 percent stake in the ad agency, confirmed that talks were 
taking place but said nothing had been decided.  
    South Korea's Hankyoreh newspaper reported late Tuesday that 
Samsung Group wanted to divest from Cheil, citing unnamed 
sources. The group's founding Lee family has been restructuring 
the conglomerate, divesting non-core affiliates. 
     Cheil shares opened sharply lower and were down 10.8 
percent as of 0253 GMT, compared with a 0.2 percent rise for the 
broader market  .KS11 .  
    A Cheil spokeswoman told Reuters the firm was not aware of 
any sales talks by top shareholders, while Samsung Group and 
Samsung C&T declined to comment on the possibility of 
divestment.      
    Various Samsung firms including Samsung C&T and Samsung 
Electronics Co Ltd  005930.KS  collectively control about 28.6 
percent of Cheil, worth about 582 billion won ($475.67 million) 
based on current market prices. The stake is not considered a 
key piece of Samsung's ownership structure.            
     
 
 
($1 = 1,223.5300 won) 
 
 (Reporting by Se Young Lee; Editing by Richard Pullin and 
Stephen Coates) 
 ((vincentsy.lee@thomsonreuters.com; +822 3704 5646; Reuters 
Messaging: vincentsy.lee.thomsonreuters.com@reuters.net; follow 
me on Twitter @Rover829)) 
 
Keywords: CHEIL WORLDWIDE SAMSUNG GROUP/