April 20, 2024

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[THE INVESTOR] Samsung Electronics said on April 6 it will participate in the ongoing rights offering of Samsung Heavy Industries by allocating 204 billion won (US$191 million) in funds.

Korea’s top tech giant and the leading company in Samsung Group, the country’s largest family-run conglomerate, said in a regulatory filing that it aims to secure an additional 34.7 million shares in the shipyard.

The shipbuilder, based in Geoje, 470 kilometers southeast of Seoul, has been facing financial troubles amid an industry slump and decided in January to seek a rights offering worth 1.5 trillion won.

Samsung Electronics’ participation comes as the tech company is already the biggest shareholder of the conglomerate’s shipbuilding business.

As of the end of 2017, Samsung Electronics held a 16.91 percent stake in the shipbuilding affiliate.

By Song Seung-hyun and newswires (ssh@heraldcorp.com)