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The Korea Herald
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THE INVESTOR
March 29, 2024

Samsung

[SAMSUNG IR] Samsung still skeptical about NASDAQ listing

  • PUBLISHED :November 29, 2016 - 11:37
  • UPDATED :November 29, 2016 - 11:37
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[THE INVESTOR] Samsung Electronics on Nov. 29 said that it is still skeptical about the actual benefits of a US listing that has been discussed for years.

“There are still uncertainties about how much new resources could be secured through the US listing,” said Lee Myung-jin, the company’s IR chief, during a conference call.

“The US listing could be reviewed after we decide first on setting up a holding company.”




The comments come after the Korean tech giant unveiled the tentative direction of its new shareholder policies, including the split-off into holding and operating firms.

The company said it will review diverse ways to elevate shareholder value, including the organizational revamp and additional dividends, for the next six months.

Amid growing pressure from Samsung investors to modernize its management structure and share more profits, US activist hedge fund Elliott Management also made similar proposals last month.

Setting up a holding company is expected to pave the way for a pending leadership transfer at the nation’s largest conglomerate.

The heir apparent, Samsung Electronics Vice Chairman Lee Jae-yong has raised his stake at the flagship electronics unit of Samsung Group. After the possible split-off, Lee is likely to seek a higher stake in the holding company that would allow him to wield more power across other affiliates.

Lee, together with his father, the ailing Samsung patriarch Lee Kun-hee, owns less than 4 percent stake in the company. The combined favorable stake, including those owned by other Samsung companies, is estimated to be about 18 percent.

On the day, Samsung also pledged to pay out 50 percent of its free cash flow as dividends this year. The total dividends are expected to increase 30 percent to 4 trillion won (US$3.40 billion) compared to 3.1 trillion won last year.

By Lee Ji-yoon (jylee@heraldcorp.com)

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