Samsung’s restructuring concessions underwhelm shareholders
Seoul — South Korea’s Samsung Electronics said on Tuesday it will increase dividends and consider splitting itself, as the tech giant faces possibly the biggest structural change in its 47-year history. The world’s top maker of smartphones, memory chips and televisions, however, said it was "absolutely neutral" about whether to proceed, and provided little detail on the potential restructuring, underwhelming investors and keeping shares flat. "The review does not indicate the management or the board’s intention one way or another," the company said in a statement, adding it hired external advisers for a review that is expected to take at least six months. The move comes after US activist hedge fund Elliott Management in October called for the firm to split itself into a holding vehicle for ownership purposes and an operating company, and boost shareholder returns. Shares in Samsung, worth $224bn, traded largely flat, rising 0.06% by 5.19am GMT. A boost in 2016 payouts fell short of ...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.