Samsung investors schooled on restructuring bets

SAMSUNG SDS

29/01/2016 04:10

(The author is a Reuters Breakingviews columnist. The opinions 
expressed are her own.) 
    By Robyn Mak 
    HONG KONG, Jan 29 (Reuters Breakingviews) - The heir to 
South Korea's top conglomerate is selling part of his stake in 
Samsung SDS. That's a disappointment for shareholders hoping for 
a merger between the IT services company and flagship Samsung 
Electronics. Guessing what Jay Y. Lee will do next is risky 
business. 
        
    Full view will be published shortly. 
     
    CONTEXT NEWS 
    - Samsung Group said on Jan. 28 that its de facto leader, 
Jay Y. Lee, will sell a 2.05 percent stake in Samsung SDS for 
380 billion won ($315 million). The money will go towards buying 
any unsubscribed shares from the rights issue of Samsung 
Engineering. 
    - Lee, who is the vice chairman of Samsung Electronics, said 
in December that he would buy up to 300 billion won ($254.7 
million) worth of Samsung Engineering shares should the 
company's rights issue not be fully subscribed. Samsung 
Engineering, an affiliate of the South Korean conglomerate, 
primarily makes oil and gas facilities and plants. 
    - After the sale, Lee will retain a 9.3 percent stake in 
Samsung SDS, an IT services company. 
    - Samsung Electronics said in June last year that it had no 
plans to merge with Samsung SDS in an attempt to quell 
speculation that such a deal is in the works to help Samsung 
Group's succession process, Reuters reported. 
    - Shares of Samsung SDS were down 13.6 percent to 225,500 
won by 1 p.m. Korea time (0400 GMT) on Jan. 29. Shares of 
Samsung Engineering rose 15 percent to 12,750 won. 
    - Reuters: Samsung Group de facto leader to sell 2.05 pct 
stake in Samsung SDS  urn:newsml:reuters.com:*:nS6N14R034 
     
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 (On Twitter https://twitter.com/mak_robyn. Editing by Peter 
Thal Larsen and Katrina Hamlin) 
 ((robyn.mak@thomsonreuters.com;)(Reuters Messaging: 
robyn.mak.thomsonreuters.com@reuters.net)) 
 
Keywords: SAMSUNG GROUP SAMSUNG SDS/BREAKINGVIEWS