Published : Jan. 28, 2016 - 19:58
Samsung Life Insurance will take over a 37.45 percent stake in Samsung Card from Samsung Electronics in a deal worth 1.54 trillion won ($1.27 billion), the companies said Thursday.
“Samsung Life’s board of directors approved the purchase of the entire 37.45 percent stake in Samsung Card, or 43.39 million shares, held by Samsung Electronics,” the insurance firm said in a regulatory filing in Seoul. In a separate filing, Samsung Electronics also notified the approval of the same deal by its own directors.
Samsung Life headquarter building in Seoul (Yonhap)
Samsung Life will pay 35,500 won per share, 500 won higher than Thursday’s closing price of 35,000 won.
With the purchase, the company’s stake in the credit card affiliate will rise to 71.8 percent.
The deal is the latest in a series of moves by Korea’s top conglomerate Samsung Group to realign its corporate governance structure and business portfolio.
“With the deal, Samsung Life has laid foundation for a holding-company status for the group’s other financial business units from a mid- to long-term perspective,” said Choi Jung-wook, an analyst at Daishin Securities.
Shares in Samsung Life soared 11.51 percent to 109,500 won, while Samsung Card rose 10.41 percent to 35,000 won per share.
By Lee Sun-young (milaya@heraldcorp.com)