skip to contents

Arirang News

Category Image


Samsung Everland to go public in Q1 next year

Updated: 2014-06-04 03:43:07 (KST)
  • facebook  
  • twitter  
  • googleplus  
  • National email  
  • National print


Samsung Everland will go public by next March.
The de facto holding company of Korea's biggest conglomerate Samsung said Tuesday that it plans an intial public offering as part of efforts to become a global fashion and service company.
The move, however, is widely seen by analysts as the next step in the conglomerate's succession plan as it relates to Samsung Electronics chairman Lee Kun-hee's three children.
Currently, his son Jae-yong holds the largest 25 percent stake in Samsung Everland, while his two daughters Boo-jin and Seo-hyun each hold around an 8-and-a-half percent stake.
Chairman Lee holds a mere 3.7 percent.
Analysts say the listing of Samsung Everland will give the chairman's children means to generate cash by selling shares in the company.
The cash could be used to help pay inheritance taxes and buy shares in companies they want to control.

"Samsung Group would need a lot of transaction costs in order to pay necessary taxes, in order to swap necessary stakes from one entity to the other."

Questions linger about Samsung's future as the group's de facto chairman Lee Kun-hee was hospitalized last month after suffering a heart attack.
Many predict that the electronics and financial sector will be handed over to Lee's only son Jae-yong, the chemical and hotel sectors to first daughter Boo-jin, and the fashion and media sectors to second daughter Seo-hyun.
Samsung Everland is expected to lay out a detailed schedule and procedues for the listing later this month.
Hwang Ji-hye, Arirang News.


Reporter : emilyfwang@arirang.co.kr

Comments

Send Message Send