April 26, 2024

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[THE INVESTOR] Samsung C&T has eased itself out of both cross-shareholding governance structure and overhang issues as Samsung Electro-Mechanics and Samsung Fire & Marine Insurance have decided to sell their entire stake, said KB Investment and Securities on Sept. 21.

It was the only remaining link of circular shareholding since Samsung SDI sold stake in Samsung C&T in April. Concerns over overhang have been weighing down its stock price but this will eliminate the issue, said analysts Kim Jun-seob and Lee Nam-seok.

Sale of non-operational assets also should be noted. Samsung C&T has sold its headquarters building in southern Seoul for 748.4 billion won and is seeking to sell 20.1 percent stake in Hanwha General Chemical. Cash inflow from the deals will be put to use in governance restructuring and boost its earnings and stock price, they added.

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