The Strategist

Samsung sold shares in four companies


09/19/2016 - 14:07



Technology giant Samsung announced sale of shares of four companies, including ASML Holding NV and Seagate Technology Plc. Thus, the company in order to release funds for additional investments in its core business.



Samsung stated that it sold about half of its shares of ASML, and the whole package of Seagate shares, that is, 4.2%. The company was also sold 0.7 percent stake in Sharp Corp and 4.5% of Rambus Inc.

Samsung’s spokesman said to Reuters that the total sales revenue exceeded 1 trillion won ($ 888.85 million), but refused to give more details, including information about when the shares were sold.

According to Reuters, Samsung sold half of its stake in ASML for 606 million euros. Cost of the South Korean company’s share in Rambus, Seagate, Sharp was $ 456.4 million, based on prices at the close of the stock exchange on Friday.

Samsung Electronics and the other Samsung Group units are getting rid of non-core assets as the South Korean conglomerate seeks to focus on core operations and provide more resources for its businesses. However, Samsung assured that the sale of shares will not affect relations with relevant companies.

The sale of shares took place on the background of a scandal with the new smartphone Samsung Galaxy Note 7. The US Consumer Product Safety Commission (CPSC) announced recall of the model due to spontaneous combustion of the battery. Those consumers who have already purchased the new smart phones, can either exchange them or get a refund.

Earlier in a statement, the Consumer Product Safety Commission urged Samsung Galaxy Note 7’s owners to stop using the smart phones and turn them off because of problems with the battery. At the same time, it has been noted that the CPSC is working with Samsung on announcement of Galaxy Note 7’s recall.

After that, the company recommended owners of Galaxy Note 7 to turn off their phones, and return them as soon as possible. "We strongly encourage all customers to take advantage of the exchange program, because your safety is our top priority. New sales and deliveries of these devices are stopped, but if you already have a Galaxy Note 7, we strongly recommend you to take it back", - said Samsung in a statement, which was published on the company’s website.

Problems with batteries in Galaxy Note 7 smartphones led to the fact that shares of Samsung Electronics in two days have fallen in price by more than 10%, according to Bloomberg estimates. Market capitalization of Samsung Electronics fell by $ 22 billion during two days.

According to analysts polled by Reuters, problems with the Galaxy Note 7 can cause damage to the image of Samsung in the amount of $ 211 billion in the long term.

source: reuters.com




More
< >

Friday, December 15th 2017 - 14:27 BP returns to the solar energy market

Wednesday, December 13th 2017 - 13:25 Facebook revises its tax policy in Europe