Two Samsung units to sell group firm's shares, as S.Korea curbs cross-ownerships (updated)

Samsung Electro-Mechanics

20/09/2018 09:51

* Samsung affiliates to sell $867 mln worth of Samsung C&T
shares 
    * Sales to be via block trades
    * Regulatory pressure on S.Korea firms to ease
cross-shareholdings

 (Adds details from company statement, background)
    SEOUL, Sept 20 (Reuters) - Two Samsung Group affiliates said
on Thursday they are selling their entire stakes worth a
combined $867 million in Samsung C&T Corp  028260.KS , as South
Korea's biggest conglomerate faces government pressure to unwind
group cross-shareholdings. 
    The moves follow a similar stake sale in Samsung C&T, the 
group's de facto holding company, by another Samsung affiliate
earlier this year, as the government forces big business groups
to improve opaque ownership structures.
    Samsung Fire & Marine Insurance  000810.KS  said in a
regulatory filing that the sale of 2.6 million shares in C&T was
to improve its asset management. And Samsung Electro-Mechanics
 009150.KS  said in a separate filing it also decided to unload
about 5 million shares in Samsung C&T to secure funds for
investments and improve its balance sheet.
    The shares will be sold in the stock market as block trades,
they said.
    Samsung Group  SAGR.UL  is controlled through a web of
circular shareholdings between companies such as Samsung C&T,
Samsung Life Insurance  032830.KS  and Samsung Electronics
 005930.KS .
    Critics have said the structure has enabled the family of
Samsung heir Jay Y. Lee to retain control of the companies in
the conglomerate, especially crown jewel Samsung Electronics,
with minimum investments.
    Earlier this year, Samsung SDI  006400.KS  sold its shares
in Samsung C&T.  urn:newsml:reuters.com:*:nL3N1RN30D
    Samsung C&T shares closed up 4 percent, while Samsung
Elec-Mech was down 3.3 percent versus the wider market's  .KS11 
0.63 percent rise.
($1 = 1,120.5100 won)

 (Reporting by Ju-min Park and Heekyong Yang; Editing by
Muralikumar Anantharaman)
 ((ju-min.park@thomsonreuters.com; +82 2 3704 5650; Reuters
Messaging: ju-min.park.thomsonreuters.com@reuters.net))