April 24, 2024

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[THE INVESTOR] Samsung SDS said on March 24 it would not spin off its local logistics solutions unit this year, leading to confusion among shareholders.

Keen attention has been being paid to the spin-off scheme of the IT and logistics solutions company whose majority stake is owned by key Samsung companies, including Samsung Electronics (22.58 percent), Samsung C&T (17.08 percent) and Samsung heir Lee Jae-yong (9.20 percent). 

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“The company will focus on stabilizing its businesses first,” Samsung SDS CEO Chung Yoo-seong said at a shareholders meeting on the day.

He added the ongoing separation process at overseas operations will continue and the Seoul headquarters could also review the plans in the future depending on business conditions.

Samsung SDS announced in September last year that it was reviewing the spin-off of the logistics business. Since then, the separation work has already been complete in the US, China, Singapore and Brazil, with the process ongoing in India.

Despite the company’s denial, industry watchers say, the business separation is widely expected to be part of the firm’s extensive plans to merge the IT business unit with Samsung Electronics, paving the way for the heir to strengthen his control over group affiliates.

On the day, Samsung Electronics also said it would not rush to set up a holding company citing growing uncertainties surrounding the company’s pending leadership transfer to a new generation in the absence of the jailed Vice Chairman Lee, the de facto leader of the nation’s largest conglomerate.

By Kim Young-won (wone0102@heraldcorp.com)