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The Korea Herald
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THE INVESTOR
March 19, 2024

Samsung

Harman shareholders to vote on Samsung merger Feb. 17

  • PUBLISHED :February 13, 2017 - 15:53
  • UPDATED :February 13, 2017 - 15:53
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[THE INVESTOR] Shareholders of Harman International will vote on the US audio giant’s planned integration with Samsung Electronics on Feb. 17, industry sources said on Feb. 13.

The US$8 billion mega deal should get approval from 50 percent or more of the shareholders. If the deal is approved, all the shareholders are required to sell their stakes in the company. 




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Samsung will be paying US$112 per Harman share in cash, marking a 28 percent premium on the closing price on Nov. 11, a day before the deal was publicized, and a 37 percent premium on its 30-day volume weighted average.

In January, a group of minority investors filed a class action suit against Harman CEO and the board, claiming Samsung’s buying price is still too low considering the share price reached a high of US$145.10 in April 2015.

Despite some resistance, Harman predicts no serious impact from the suit.

“The feedback regarding the transaction has been very positive, and this transaction will deliver compelling and immediate value to shareholders at a 37 percent all-cash premium,” a Harman spokesperson told The Investor last month.

“We are still on track for a mid-2017 close.”

Following the shareholders’ vote, the deal will go through antitrust reviews by governments around the world.

Samsung and Harman plan to start the integration work in the latter half of this year. The management and some 8,000 employees are expected to remain even after the acquisition.

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

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