Samsung Group said Monday that Samsung Electronics vice chairman and the group’s heir apparent Lee Jae-yong could purchase up to 300 billion won ($260 million) new shares of Samsung Engineering, the troubled plant-making unit.
In a board meeting on the day, Samsung Engineering decided to issue new shares worth 1.2 trillion won, or a total of 156 million shares, to improve its financial health. The plant builder suffered an operating loss of 1.52 trillion won during the third quarter of the year due to a protracted slump in overseas plant projects.
Lee Jae-yong, the vice chairman of Samsung Group. (Samsung)
Samsung said Lee could chip in the stock buying when there was any lack of subscriptions, calling the planned capital increase crucial for the survival of Samsung Engineering and the benefits of its shareholders.
“Lee would join the builder’s fund-raising plan on the same conditions as other investors. There is no intention to seek short-term profits or secure more shares in the company,” the group said in a statement.
Samsung SDI is the largest shareholder of Samsung Engineering with a 13.1 percent stake. Samsung C&T Corp., Samsung Fire and & Marine Insurance Co. and other affiliates hold a combined 22.03 percent stake in Samsung Engineering.
(jylee@heraldcorp.com)
