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Samsung Electronics Co Ltd (SSNLF) Considers Splitting Company in Two

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Samsung Electronics Co Ltd (OTCMKTS: SSNLF ,KRX: 005930 ) is considering splitting the company in two.

Samsung Electronics Co Ltd says it has brought in external advisors to help it "conduct a thorough review of the optimal corporate structure." The company says this doesn't mean that there will be a split, just that it is considering one.

SSNLF says that the review of its corporate structure will take at least six months to complete . Once the review is complete, the company will decide what to do. It is planning to look into the different strategic, operational, legal, regulatory and financial possibilities of a split.

Samsung Electronics Co Ltd specifically mentions creating a new holding company during the split. It also talks about the "potential benefits and feasibility of listing the Company's shares on additional international exchanges."

Samsung Electronics Co Ltd also says that it is planning other ways to give back to investors. This includes allocating 50% of free cash flow in 2016 and 2017 for shareholder returns. It also plans to increase total dividends for 2016 by 30% when compared to last year. SSNLF is also planning to introduce quarterly dividends starting in April of next year.

Samsung Electronics Co Ltd has been facing pressure from activist investor Elliott Management . The investor has been pushing for the company to split in two. It wants one holding company and an operating company. Elliott Management has also been pushing for SSNLF to give more back to shareholders. It seems the tech company is attempting to appease the activist investors with its newest announcement.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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