[EQUITIES] ‘Spin-off to be governance disadvantage for Samsung SDS’

[THE INVESTOR] Samsung SDS will be put in an unfavorable position after its spin-off in terms of corporate governance, according to Shinhan Investment on Oct. 28. 

The securities firm maintained its “neutral” position on investment.

“The spin-off will take place in first half of 2017, and the logistics division will probably be merged into Samsung C&T in which major shareholders have relatively higher stakes,” said analyst Gong Yeong-gyu. 

“If the IT service division succeeds in merging with Samsung Electronics, however, it can be interpreted in a favorable way,” added the analyst. 

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