Samsung Group’s subsidiaries, such as Samsung Electronics, have agreed to purchase new shares issued by Samsung Electronics, a sister company, to help troubled Samsung Heavy Industries.pipe fittings
As an affiliate company of Samsung Heavy Industries, Samsung Electronics is the largest shareholder of Samsung Heavy Industries and holds 16.91% shares of Samsung Heavy Industries. On April 6, Samsung Electronics announced that it will participate in a capital increase plan for Samsung Heavy Industries to purchase 34,762,616 new shares at a price of 5879 won (approximately US$5.49) per share. Samsung Electronics said Samsung Electronics’ total investment in Samsung Electronics will increase to 677.8 billion won after adding new stock worth 214 billion won.
Not long ago, Samsung Life Insurance and Samsung Electro-Mechanics have decided to invest 39.1 billion won and 27.6 billion won respectively to acquire new shares of Samsung Heavy Industries.
Samsung Heavy Industries pointed out that other sister companies Samsung SDI, Cheil Worldwide Inc, and Samsung C&T also decided to acquire new shares of Samsung Heavy Industries, but since their investment is less than 5 billion won, they do not need to be open.pipe spooling
Market analysts predict that Samsung’s decision to acquire new shares of Samsung Heavy Industries will help boost the overall investment sentiment of Samsung Heavy Industries’ small shareholders, who together hold 63.4% of the shares. welding overlay
Previously, Samsung Heavy Industries had warned that it would suffer losses of more than 700 billion won in 2017 and 2018. In order to help the company obtain operating funds, the Samsung Heavy Industry Board approved a 1.5 trillion won increase plan earlier this year. To date, the capital increase plan has received the full support of the associated Samsung Group subsidiary. 90 deg elbow