Two heiresses of South Korean conglomerate, Samsung Group, are reportedly looking to raise around ₩400 billion ($327 million) through the sale of their shares in the IT solutions subsidiary, Samsung SDS. As pre reports, the move seems to be an attempt to secure funds for paying inheritance taxes.
Industry sources stated that after Monday’s closing, a total 3.9% stake was sold in Samsung SDS via block trade through Morgan Stanley and KB Securities. Supposedly, the share price ranged from ₩127,400 to ₩129,500 per share, a discount of approximately 7 to 9% on the closing price.
While the identity of sellers has not been revealed, it has been assumed that Hotel Shilla's president, Lee Boo-jin, and Samsung Welfare Foundation director, Lee Seo-hyun, are the ones who sold the stakes.
The two sisters are the only main investors holding the exact amount of shares in the company, and had entrusted the share sale to a local bank for raising funds last year, with April 25, 2022, set as the deadline.
Block traders are gauging buyer demands to sell the shares, which will help the two sisters secure about ₩400 billion ($327 million) in cash upon completion of the deal.
The large selloff is the latest move of its kind by the Samsung family after it announced last year that it plans to pay off inheritance taxes worth ₩12 trillion ($10.8 billion) following Chairman Lee Kun-hee’s death in 2020.
As per their shareholdings in various affiliatesd, the estimated tax for the late chairman’s wife Hong Ra-hee is ₩3.1 trillion, ₩2.6 trillion for the eldest daughter Lee Boo-jin, ₩2.4 trillion for the youngest daughter Lee Seo-hyun, and ₩2.9 trillion for the only son Lee Jae-yong.
With stakes in key affiliates, their stake sales are closely observed as they are directly related to the family's control over Samsung Group. The Lee family has been paying taxes in six installments since last year.
An industry source explained that the family cannot pay the taxes with only dividends and hence will look to raise more funds by selling properties or shares.
Samsung SDS shares plunged by over 7% on Tuesday, closing at ₩130,000 ($107), due to an increase in supply which impacted investor sentiment.
Source credit: http://www.koreaherald.com/view.php?ud=20220322000659