Samsung Group sells shares in chemical, defence arms for $1.7 bln (updated)

SAMSUNG SDS

26/11/2014 01:41

* Samsung to sell stakes in 4 group firms for 1.9 trln won 
    * Hanwha Group to take stakes in Samsung Techwin, 3 others 
    * Divestment marks latest Samsung restructuring move 
 
 (Updates with comments from Samsung Group, background) 
    By Joyce Lee and Se Young Lee 
    SEOUL, Nov 26 (Reuters) - South Korea's Samsung Group said 
on Wednesday it is selling stakes in four chemical and defence 
firms for 1.9 trillion won($1.72 billion) to Hanwha Group, the 
latest move in the massive task of restructuring the country's 
largest conglomerate.  
    Samsung Group is reorganising its business empire as the 
children of Samsung Electronics Co Ltd  005930.KS  chairman and 
patriarch Lee Kun-hee, 72, who has been hospitalised since May 
following a heart attack, prepare to take over the family 
enterprise. 
    The process has already seen the initial public offering of 
Samsung SDS Co  018260.KS  and the upcoming listing of de facto 
holding company Cheil Industries Inc, as well as acquisitions of 
stakes between Samsung units, setting the stage for the younger 
Lees to divvy up the conglomerate and pay an estimated 
inheritance tax bill of up to 6 trillion won.      
    In the latest shakeout, affiliates including Samsung 
Electronics Co Ltd  005930.KS  will sell a 32.4 percent stake in 
defence firm Samsung Techwin Co Ltd  012450.KS  to Hanwha Corp 
 000880.KS  for 840 billion won, the group said in a statement. 
    They will also sell a 57.6 percent stake in Samsung General 
Chemicals Co Ltd to Hanwha Chemical Corp  009830.KS  and Hanwha 
Energy Corp  YCOGN.UL  for 1.06 trillion won, it added. 
    Samsung's portion of Samsung Thales Co Ltd, a joint venture 
unit with French defence electronics firm Thales  TCFP.PA , and 
Samsung Total Petrochemicals Co Ltd, a joint venture unit with 
France's Total SA  TOTF.PA , also would be transferred to Hanwha 
firms.  
    While the group did not elaborate on the reason for the 
sales, Samsung Electronics said in separate regulatory filings 
that it would use the 761 billion won it raised from the deals 
to invest in new businesses.  
    Some analysts say the elder Lee's illness may have 
accelerated preparations by heir apparent Jay Y. Lee and his two 
sisters to ensure a smooth transfer.  
    The four companies being sold down in the latest moves could 
aid the further restructuring of the conglomerate's various 
assets even though they are not seen as central to the 
succession process, and the younger Lees will see little direct 
financial benefit, analysts said. 
    Hanwha Group, South Korea's 10th-largest conglomerate, said 
in a separate statement the acquisitions would boost its 
petrochemicals and defence-related businesses.  
       
(1 US dollar = 1,106.6000 Korean won) 
 
 (Editing by Stephen Coates) 
 ((jungyoon.lee@thomsonreuters.com; +82 2 3704 5609; Reuters 
Messaging: jungyoon.lee.thomsonreuters.com@reuters.net)) 
 
Keywords: SAMSUNG GROUP M&A/HANWHA