ID :
207472
Fri, 09/16/2011 - 05:06
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Shortlink :
https://oananews.org//node/207472
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Samsung Card expected to sell Everland stake via block deal
SEOUL (Yonhap) - Samsung Card Co., one of South Korea's leading credit card firms, is likely to unload its stake in unlisted affiliate Samsung Everland Inc. through a block deal, market watchers said Friday.
Samsung Card on Wednesday said it plans to sell its 20.64 percent in Samsung Everland, the de facto holding company of its parent Samsung Group, a deal valued at around 1.1 trillion won (US$990 million).
The company said earlier it is reviewing various means including a block deal and initial public offering (IPO), but didn't clarify a sale schedule.
Samsung Card, which controls 25.6 percent of Samsung Everland, is required to lower its interest in the amusement park operator by April next year to less than a 5 percent stake under a local financial industry law.
According to industry sources, Samsung Group had launched a task force earlier this year in a bid to complete an IPO of the credit card firm by December.
The plan, however, was scrapped due to rising public criticism over major conglomerates' internal trading. Doubts on the plan's tight schedule were also considered, the sources said.
Market watchers said selling the stake to a non-financial affiliate or repurchasing the shares are unlikely as they run against the conglomerate's 2008 pledge to reform its governing structure, including a reduction in cross-share ownership.
Meanwhile, industry sources said the stake could be sold to local institutions or foreign investors who bet on Samsung Everland's IPO in the future.
Samsung Card on Wednesday said it plans to sell its 20.64 percent in Samsung Everland, the de facto holding company of its parent Samsung Group, a deal valued at around 1.1 trillion won (US$990 million).
The company said earlier it is reviewing various means including a block deal and initial public offering (IPO), but didn't clarify a sale schedule.
Samsung Card, which controls 25.6 percent of Samsung Everland, is required to lower its interest in the amusement park operator by April next year to less than a 5 percent stake under a local financial industry law.
According to industry sources, Samsung Group had launched a task force earlier this year in a bid to complete an IPO of the credit card firm by December.
The plan, however, was scrapped due to rising public criticism over major conglomerates' internal trading. Doubts on the plan's tight schedule were also considered, the sources said.
Market watchers said selling the stake to a non-financial affiliate or repurchasing the shares are unlikely as they run against the conglomerate's 2008 pledge to reform its governing structure, including a reduction in cross-share ownership.
Meanwhile, industry sources said the stake could be sold to local institutions or foreign investors who bet on Samsung Everland's IPO in the future.
