Samsung Succumbs to Pressure; Considers Split into Two
Business News, IT & Telecoms, Latest Headlines Tuesday, November 29th, 2016
BALTIMORE, MD (AFRICAN EXAMINER) – Following persistent pressure from the investors, Samsung Electronics has confirmed its resolve to consider the proposal to divide the company into two separate entities.
Some investors have mounted pressure on the foremost Electronics giant to break itself into a holding unit and an operating company, so as to boost shareholders’ value.
The South Korean technology giant has also announced plans to increase dividends and said it would continue to buy back more shares.
Samsung in October, was forced to stop production of its flagship smartphone model after failing to resolve battery problems leading to overheating and the devices catching fire.
Analysts posit that the benefit of splitting Samsung Electronics into two companies include cross-shareholding which would affect only the holding company while the operating unit could be assessed separately, making it a lot easier to arrive at a clean company evaluation.
The investors have expressed delight on the Samsung’s readiness, as they respond it would give back more control to the founding Lee family behind the company.
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