Fair Trade Commission “Samsung SDI should sell off Samsung C& T’s 4.4 million stakes”
[ Kwon Dae-gyung kwon213@ ] | 2017-12-22 11:33:06
Samsung SDI should sell 440,000 shares of Samsung C & T, which is held by Samsung SDI, no later than the third quarter as the Fair Trade Commission revises its circular investment criteria. Accordingly, Lee Jae-yong, vice chairman of Samsung Electronics, and Samsung Group`s governance structure are expected to be variables.
Kim Sang-joo, chairman of the Fair Trade Commission, on December 21, briefed the government at the Sejong government office and said, "We have decided to change the guidelines for the implementation of the new circular- . The FTC also decided to establish a legal format by enacting these guidelines as an example.
Circular financing refers to a chain of shares held by a holding company or an affiliate of a large group of companies, and it is a management method that controls the entire company even if the total number or total number of shares is small. In other words, the structure of A company-B company-C company-A company is equivalent to circulating investment.
Firstly, the FTC decided that the judgment of the corporation that is out of the loop + the corporation out of the loop was wrong. The case is seen as "strengthening" in the process of merging Samsung in 2015, but this time, it is corrected to "formation of a circular investment". It also reversed the decision on the grounds that "economic pragmatism" is the same as other cases classified as strengthening cyclical investment. If the content of the merger is stipulated as a formation, the company must dispose of all shares acquired or owned by a subsidiary. Meanwhile, Kanghwa can only dispose of the investment amount added as a merger.
As the FTC revised its guideline, Samsung SDI should dispose of more than 4 million shares of Samsung C & T (2.1% of its stake) and KRW 527.6 billion in closing price on the previous day. It is because the characteristics of `Samsung C & T - Samsung Electronics - Samsung SDI - Samsung C & T`, which were previously seen as strengthening, changed due to the change in the guideline.
Samsung SDI decided to sell all of its shares of Samsung C & T Co., Ltd. (904,2758 shares, 4.7%). Samsung SDI sold 5mn shares (2.6%).
However, the Fair Trade Commission has informed Samsung of the interpretation of the modified version at the time the modified rules are finalized and decided to grant a grace period for six months from that date. Before the end of 3Q09, Samsung SDI should sell its stocks.
The FTC revised this guideline as follows: In August, the Seoul Central District Court concluded that `Samsung`s appeal was successful in the process of drafting the guideline for the voluntary interpretation of the change in the circulation of shares due to the merger of Samsung C & T and Cheil Industries.
The FTC has accepted the results of Lee Jae-yong`s first trial, which is expected to have a negative effect on the vice-chairman`s second trial. In addition, as Samsung SDI needs to sell additional stakes in Samsung C & T, the Samsung Group`s governance structure is fine, but some changes are inevitable.
Sejong city=By Kwon Dae-gyung kwon213@dt.co.kr
[ copyright ⓒ The Digitaltimes ]
Kim Sang-joo, chairman of the Fair Trade Commission, on December 21, briefed the government at the Sejong government office and said, "We have decided to change the guidelines for the implementation of the new circular- . The FTC also decided to establish a legal format by enacting these guidelines as an example.
Circular financing refers to a chain of shares held by a holding company or an affiliate of a large group of companies, and it is a management method that controls the entire company even if the total number or total number of shares is small. In other words, the structure of A company-B company-C company-A company is equivalent to circulating investment.
Firstly, the FTC decided that the judgment of the corporation that is out of the loop + the corporation out of the loop was wrong. The case is seen as "strengthening" in the process of merging Samsung in 2015, but this time, it is corrected to "formation of a circular investment". It also reversed the decision on the grounds that "economic pragmatism" is the same as other cases classified as strengthening cyclical investment. If the content of the merger is stipulated as a formation, the company must dispose of all shares acquired or owned by a subsidiary. Meanwhile, Kanghwa can only dispose of the investment amount added as a merger.
As the FTC revised its guideline, Samsung SDI should dispose of more than 4 million shares of Samsung C & T (2.1% of its stake) and KRW 527.6 billion in closing price on the previous day. It is because the characteristics of `Samsung C & T - Samsung Electronics - Samsung SDI - Samsung C & T`, which were previously seen as strengthening, changed due to the change in the guideline.
Samsung SDI decided to sell all of its shares of Samsung C & T Co., Ltd. (904,2758 shares, 4.7%). Samsung SDI sold 5mn shares (2.6%).
However, the Fair Trade Commission has informed Samsung of the interpretation of the modified version at the time the modified rules are finalized and decided to grant a grace period for six months from that date. Before the end of 3Q09, Samsung SDI should sell its stocks.
The FTC revised this guideline as follows: In August, the Seoul Central District Court concluded that `Samsung`s appeal was successful in the process of drafting the guideline for the voluntary interpretation of the change in the circulation of shares due to the merger of Samsung C & T and Cheil Industries.
The FTC has accepted the results of Lee Jae-yong`s first trial, which is expected to have a negative effect on the vice-chairman`s second trial. In addition, as Samsung SDI needs to sell additional stakes in Samsung C & T, the Samsung Group`s governance structure is fine, but some changes are inevitable.
Sejong city=By Kwon Dae-gyung kwon213@dt.co.kr