Shake-up in key Samsung assets to cement heir’s grip as succession looms
Move combines two key companies in South Korean conglomerate
Samsung Electronics vice-chairman Jay Y Lee as Samsung. Photograph: Lee Jae-Won/Reuters
Samsung Group’s de facto holding company continues its reconstruction of South Korea’s biggest conglomerate to smooth the path for management succession, offering more than $8 billion to buy an affiliate with a key stake in flagship firm Samsung Electronics.
Cheil Industries is offering new stock to buy building firm Samsung C&T Corp. After market jitters on Samsung’s overhaul, shares in both rose nearly 15 per cent, taking Samsung C&T’s value beyond the offer price to 10 trillion won.
The move combines what analysts consider two key companies in the sprawling family-controlled conglomerate. It would cement the position of heir-apparent and Samsung Electronics vice-chairman Jay Y Lee as Samsung prepares for the transfer of control from ailing patriarch Lee Kun-hee to his children. – (Reuters)