AFP, Seoul :
Samsung announced Wednesday the $1.7 billion sale of stakes in four affiliates and a $2.0 billion share buyback as the South Korean giant steps up restructuring efforts ahead of a generational ownership succession.
The sale of its petrochemical and defence units to the Hanwha conglomerate, which has major petrochemical holdings, is expected to be finalised in the first half of next year, Samsung Group said in a statement.
The deal involves Samsung Electronics and other group affiliates selling their combined stakes in defence firm Samsung Techwin and Samsung General Chemicals.
A 50-percent stake held by Samsung General Chemicals in its joint venture with the French energy giant Total, called Samsung Total, will also be sold to Hanwha, along with Samsung Techwin’s 50-percent holding in a joint venture with French defence firm Thales.
It marks the first sale of Samsung affiliates since the group was forced to shed its struggling carmaking unit in 1997 during the Asian financial crisis.
The group, comprised of dozens of units including the flagship Samsung Electronics, earns a collective revenue equal to around 20 percent of South Korea’s annual economic output.
Separately Wednesday, Samsung Electronics announced a share buyback plan valued at 2.2 trillion won ($2 billion) — a move to appease shareholders frustrated with a slumping share price.
The buyback from Thursday to February involves 1.96 trillion won worth of common shares and 229.5 billion worth of preferred shares, the firm said in a regulatory filing.
The announcement came after trading closed on the Seoul stock market.
The world’s top maker of mobile phones and TVs has been under growing pressure to boost returns for shareholders including increasing dividends.
Its share price tumbled more than 10 percent this year as growth in the key smartphone business began to lose steam, sapping profits.
Samsung announced Wednesday the $1.7 billion sale of stakes in four affiliates and a $2.0 billion share buyback as the South Korean giant steps up restructuring efforts ahead of a generational ownership succession.
The sale of its petrochemical and defence units to the Hanwha conglomerate, which has major petrochemical holdings, is expected to be finalised in the first half of next year, Samsung Group said in a statement.
The deal involves Samsung Electronics and other group affiliates selling their combined stakes in defence firm Samsung Techwin and Samsung General Chemicals.
A 50-percent stake held by Samsung General Chemicals in its joint venture with the French energy giant Total, called Samsung Total, will also be sold to Hanwha, along with Samsung Techwin’s 50-percent holding in a joint venture with French defence firm Thales.
It marks the first sale of Samsung affiliates since the group was forced to shed its struggling carmaking unit in 1997 during the Asian financial crisis.
The group, comprised of dozens of units including the flagship Samsung Electronics, earns a collective revenue equal to around 20 percent of South Korea’s annual economic output.
Separately Wednesday, Samsung Electronics announced a share buyback plan valued at 2.2 trillion won ($2 billion) — a move to appease shareholders frustrated with a slumping share price.
The buyback from Thursday to February involves 1.96 trillion won worth of common shares and 229.5 billion worth of preferred shares, the firm said in a regulatory filing.
The announcement came after trading closed on the Seoul stock market.
The world’s top maker of mobile phones and TVs has been under growing pressure to boost returns for shareholders including increasing dividends.
Its share price tumbled more than 10 percent this year as growth in the key smartphone business began to lose steam, sapping profits.
