Samsung Life to buy Samsung Electronics stake in Samsung Card -local media (updated)

Samsung Card

28/01/2016 04:22

* Insurer become top Samsung Card shareholder -Money Today 
    * Samsung Card shares up 2.3 pct, stake worth $1.2 bln 
    * Move would streamline Samsung Group ownership structure 
 
 (Adds Samsung Electronics reaction, background) 
    SEOUL, Jan 28 (Reuters) - Samsung Life Insurance Co Ltd 
 032830.KS  will buy sister company Samsung Electronics Co Ltd's 
 005930.KS  entire stake in affiliate Samsung Card Co Ltd 
 029780.KS , South Korean online publication Money Today 
reported on Thursday, as the country's biggest conglomerate 
steps up move to streamline ownership.    
    The insurer's board plans to vote on Thursday on buying 
Samsung Electronics' 37.5 percent stake in the Samsung Group 
credit card arm, Money Today reported, citing unnamed sources. 
With Samsung Card shares up 2.3 percent at 0410 GMT, the stake 
was worth about 1.42 trillion won ($1.17 billion).  
    Samsung Life already owns 34.4 percent of the card business. 
Analysts and investors have long speculated the insurer would 
eventually consolidate ownership of the family-controlled 
conglomerate's financial arms under a single entity. 
    The insurance business is a key affiliate through which the 
founding Lee family exerts control over its 
smartphones-to-construction business empire. Putting majority 
control of Samsung Card under the insurer would also strengthen 
the influence of de facto leader Jay Y. Lee and his two sisters 
over the business.  
    A Samsung Life spokesman and a Samsung Electronics 
spokeswoman did not have immediate comment. Shares in Samsung 
Life were up 5.4 percent, while Samsung Electronics shares were 
off 3 percent after the tech giant warned it expects a tough 
2016.  urn:newsml:reuters.com:*:nL3N15B6HY 
    In regulatory filings, the Korea Exchange asked Samsung Life 
and Samsung Card to comment on the reported stake purchase plan 
by 0300 GMT on Friday.      
 
($1 = 1,208.6000 won) 
     
 
 (Reporting by Joyce Lee and Se Young Lee; Editing by Kenneth 
Maxwell) 
 ((jungyoon.lee@thomsonreuters.com; +82 2 3704 5609; Reuters 
Messaging: jungyoon.lee.thomsonreuters.com@reuters.net)) 
 
Keywords: SAMSUNG LIFE SAMSUNG CARD/SAMSUNG ELEC