Samsung SDS Co., a key IT unit of South Korea's top conglomerate Samsung Group, said Tuesday it has decided not to take measures to boost its share price as it mulls spinning off the logistic business.

The decision came a week after a group of small investors demanded Samsung SDS buy back shares or pay interim dividends to bolster its share price.

"Samsung SDS has decided not to consider a share buyback or an interim dividend as a spinoff is under consideration," the company said in a regulatory filing.

"It is seen as desirable to parlay cash on hand into boosting corporate value such as mergers and acquisitions after a spinoff, instead of buying back shares or paying dividends."

Samsung SDS said it was difficult to reflect investors' demands this time, but it will again consider investor-friendly measures like an increase in dividends down the road.

"Samsung SDS will make efforts to strengthen its competitive edge and maximize shareholder value by boosting corporate value, or the essence of the share price," the company said.

Samsung SDS further said it is seeking to hive off the logistics business due to the changing global market and out of concerns over limits to growth.

"It is urgent (for Samsung SDS) to expand its external market to pursue sustainable growth,” it said.

In a regulatory filing a fortnight ago, Samsung SDS said the company would consider a spinoff of its logistics business in order to hone its global competitiveness.

The group of small investors opposing the spinoff said they were discussing countermeasures. A week ago, they threatened to hold a mass protest rally and file a complaint against Samsung Electronics Vice Chairman Lee Jae-yong, the group's heir apparent, and Samsung SDS president.

The decision sent the company's shares tumbling in morning trade on Tuesday. Samsung SDS shares were down 2.62 percent at 148,500 won ($127.80) on the Seoul bourse as of 10:51 a.m. (Yonhap)