Samsung Life to invest $249 mln in Samsung Securities, raise stake (updated)

Samsung Securities Co

11/11/2016 07:54

* Insurer's stake in Samsung Securities to rise to 30.1 pct 
    * Firm bought $1.55 bln in affiliates' shares earlier this 
year 
    * Some investors believe firm preparing to be a holding 
company 
 
 (Adds comments from Samsung Life, background on Samsung Group 
restructuring) 
    By Se Young Lee 
    SEOUL, Nov 11 (Reuters) - South Korea's Samsung Life 
Insurance Co Ltd  032830.KS  said on Friday it would buy 290 
billion won ($249.13 million) worth of shares in Samsung 
Securities Co Ltd  016360.KS , boosting its stake and injecting 
capital in the brokerage affiliate. 
    The move comes amid increasing market speculation the 
country's largest life insurer by market share is moving to 
increase its control over other financial affiliates of Samsung 
Group  SAGR.UL  as part of a broader restructuring of the 
country's top conglomerate to streamline its ownership 
structure. 
    Samsung Life is buying 8.36 million Samsung Securities 
treasury shares at the brokerage's closing price of 34,700 won 
apiece on Friday, subject to regulatory approval, it said in a 
statement. 
    The life insurer will control 30.1 percent of Samsung 
Securities after completing the transaction, up from 19.2 
percent currently. 
    The insurer is one of the key vehicles through which the 
founding Lee family exerts control over various Samsung Group 
arms including Samsung Electronics Co Ltd  005930.KS . It bought 
an additional 37.5 percent stake in affiliate Samsung Card as 
well as an 8 percent stake in Samsung Securities earlier this 
year for about 1.8 trillion won.  urn:newsml:reuters.com:*:nL3N1AZ33B 
    A Samsung Life spokeswoman told Reuters the firm has no 
specific plans at present to convert to a financial holding 
company. However, Friday's stake purchase will add to investors' 
suspicions the insurer is laying the foundations for such a 
move; one of the key requirements for financial holding firms is 
to own at least 30 percent of its publicly traded affiliates. 
    Samsung Life currently owns 15 percent of Samsung Fire & 
Marine Insurance Co Ltd  000810.KS  and 72 percent of Samsung 
Card Co Ltd  029780.KS .      
 
 ($1 = 1,164.0700 won) 
 
 (Reporting by Se Young Lee; additional reporting by Joyce Lee; 
Editing by Biju Dwarakanath and Gopakumar Warrier) 
 ((vincentsy.lee@thomsonreuters.com; +822 3704 5646; Reuters 
Messaging: vincentsy.lee.thomsonreuters.com@reuters.net; follow 
me on Twitter @Rover829)) 
 
Keywords: SAMSUNG SEC M&A/SAMSUNG LIFE