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Samsung Life’s plans to raise stakes in affiliates fuel speculation
By 최희석Published : Aug. 18, 2016 - 17:48
[THE INVESTOR] Samsung Life Insurance’s plans to raise its stakes in financial affiliates is again adding weight to speculation the company is seeking to become the holding firm for Samsung Group’s finance subsidiaries.
Samsung Life plans to acquire 9 percent of Samsung Fire and Marine Insurance shares held by the company. The deal would raise Samsung Life’s stakes in Samsung Fire and Marine to about 24 percent. In addition, Samsung Life will acquire 9 percent of Samsung Securities currently held by Samsung Fire and Marine. The deal would push up Samsung Life’s stakes in Samsung Securities to about 20 percent. Earlier this year, Samsung Life purchased all Samsung Card stakes held by Samsung Electronics, boosting its share of the credit card company to 71.86 percent.
Samsung Life also holds 98 percent of Samsung Asset Management.
Under local regulations, a financial holding firm must be the largest shareholder with more than 30 percent of listed financial subsidiaries. For unlisted affiliates, the minimum stake is 50 percent.
Samsung Life, however, played down the notion.
“(Converting to a holding firm) is a measure that could be reviewed at any time, but nothing is under way at present,” the company said.
Related article :
Samsung Electronics closes at all-time high
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While speculation continues to grow, Samsung Life still requires a new law to be passed before the alleged plan could be put into action. The new law, which has yet to be passed by the National Assembly, would allow Samsung Life to become a “middle holding company” within the larger group.
Despite the obvious hurdles, market watchers say Samsung Group is likely to form two holding companies with finance companies going under Samsung Life, and other businesses congregating under Samsung Electronics.
Samsung Group, however, has yet to make its position clear.
“Converting into a holding company required tens of trillions of won, so it is difficult to comment either way at present,” a Samsung Group official told a local news service.
By Choi He-suk (cheesuk@heraldcorp.com)
Samsung Life plans to acquire 9 percent of Samsung Fire and Marine Insurance shares held by the company. The deal would raise Samsung Life’s stakes in Samsung Fire and Marine to about 24 percent. In addition, Samsung Life will acquire 9 percent of Samsung Securities currently held by Samsung Fire and Marine. The deal would push up Samsung Life’s stakes in Samsung Securities to about 20 percent. Earlier this year, Samsung Life purchased all Samsung Card stakes held by Samsung Electronics, boosting its share of the credit card company to 71.86 percent.
Samsung Life also holds 98 percent of Samsung Asset Management.
Under local regulations, a financial holding firm must be the largest shareholder with more than 30 percent of listed financial subsidiaries. For unlisted affiliates, the minimum stake is 50 percent.
Samsung Life, however, played down the notion.
“(Converting to a holding firm) is a measure that could be reviewed at any time, but nothing is under way at present,” the company said.
Related article :
Samsung Electronics closes at all-time high
Samsung's succession scenarios
While speculation continues to grow, Samsung Life still requires a new law to be passed before the alleged plan could be put into action. The new law, which has yet to be passed by the National Assembly, would allow Samsung Life to become a “middle holding company” within the larger group.
Despite the obvious hurdles, market watchers say Samsung Group is likely to form two holding companies with finance companies going under Samsung Life, and other businesses congregating under Samsung Electronics.
Samsung Group, however, has yet to make its position clear.
“Converting into a holding company required tens of trillions of won, so it is difficult to comment either way at present,” a Samsung Group official told a local news service.
By Choi He-suk (cheesuk@heraldcorp.com)
