Consolidation of Succession

Vice Chairman of Samsung Lee Jae-yong, son of Samsung Chairman Lee Kun-hee.
Vice Chairman of Samsung Lee Jae-yong, son of Samsung Chairman Lee Kun-hee.

 

Samsung SDS announced on May 8 that the board of directors decided to go public on the stock exchange within the year.

Experts are saying that the decision is aimed at consolidating Lee Jae-yong’s position in the group as a successor. Lee Jae-yong is vice chairman of Samsung Electronics and also a major shareholder of Samsung SDS. In fact, all of the members of the owner’s family have been securing their share of unlisted firms such as Samsung Everland and Samsung SDS to strengthen their power within the group. 

Currently, Samsung Electronics is the largest shareholder with a 22.58 percent stake in Samsung SDS (17.4711 million shares). Other major shareholders include Samsung Group Chairman Lee Kun-hee (0.01 percent), Samsung Electronics Vice Chairman Lee Jae-yong (11.25 percent), Hotel Shilla President Lee Boo-jin (3.9 percent), and Samsung Everland President Lee Seo-hyun (3.9 percent).

Much attention is being paid to how much the value of their stocks will increase as a result of Samsung SDS’s listing. Industry analysts are saying that Lee Jae-yong’s assets will be worth more than 1 trillion won (US$978 million). 

With stocks of Samsung SDS approaching 150,000 won (US$146.70) in the over-the-counter market, 8.7 million stocks of the vice chairman are worth nearly 1.3 trillion won (US$1.27 billion) at the moment. In particular, stocks of Samsung SDS are expected to rise further after this announcement. Therefore, the value of the Vice Chairman’s stocks is likely to increase greatly.

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