Trial to Stop Rumor

The presidents of Samsung group affiliates denied rumors about a merger between Samsung C&T and the BPO unit of Samsung SDS.
The presidents of Samsung group affiliates denied rumors about a merger between Samsung C&T and the BPO unit of Samsung SDS.

 

Samsung SDS had a board of directors meeting on June 7 to discuss spinning off its logistics business process outsourcing (BPO) arm. However, the presidents of the company and Samsung C&T, which is currently being mentioned as one to be merged with the BPO arm, denied rumors about the merger.

“As we have publicly announced, the merger between the logistics division of Samsung SDS and Samsung C&T has a zero possibility as of now,” said Kim Shin, president of the general trading division of Samsung C&T, on June 8. Samsung SDS president Hong Won-pyo echoed by saying that the companies have examined nothing with regard to the merger and the public announcement made by Samsung SDS on the previous day was to check schedules in relation to the possible spin-off.

These days, market insiders are betting on the merger between the logistics BPO arm of Samsung SDS and Samsung C&T, which is expected to help strengthen Samsung Group owners’ control of the group, the only son of chairman Lee Kun-hee and vice chairman Lee Jae-yong in particular.

At present, the vice chairman has 17.23% shares in Samsung C&T.

 

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