April 26, 2024

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[THE INVESTOR] Samsung C&T is highly likely to take over a significant share of Samsung Electronics stakes owned by financial affiliates, according to KB Investment and Securities on July 2, which has maintained a “buy” recommendation and 170,000 won (US$152) target price. 

Following the announcement of regulations on financial groups, Samsung Group’s financial arms including Samsung Securities are expected to sell their stakes in Samsung Electronics, said analyst Kim Jun-seob.

Samsung C&T, factoring in its capacity for borrowing, can acquire stakes worth up to 10 trillion won, noted the analyst. The key lies in the acquisition price, and increasing its stake with cashable assets and borrowings is positive in that the company is converting its nonperforming assets to performing assets. said Kim. 

By Hwang You-mee (glamazon@heraldcorp.com)