Samsung Electronics will consider splitting itself into two,
Fortune
reported,
citing an article in
Seoul Economic Daily.
Samsung’s board plans to meet on Nov. 29 to consider the move.
Activist investor Elliott Management proposed a split in October, saying it would increase shareholder value, the report noted. Elliott “wants Samsung Electronics to divide into a holding vehicle for ownership purposes and an operating company,” the article said.
“A split would allow the heirs of the founding Lee family to strengthen their grip on [Samsung Electronics,] the crown jewel of the Samsung Group business empire,” the
Fortune
article said.
The report said noted that since Jay Y. Lee took over from his father, Lee Kun-hee, who has been incapacitated since a May 2014 heart attach, Samsung has sold non-core assets and merged two affiliates. The reorganizations have consolidated stakes in key affiliates under a company controlled by the younger Lee and his two sisters, the
Fortune
article said. (Source:
Fortune
, Nov. 27, 2016.)
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