South Korea's Samsung Electronics Co Ltd will consider part itself into two as proposed by U.S. dissident support stock investments Elliott Management, Seoul Economic Daily provided details regarding Monday refering to an anonymous source.
A split would permit the beneficiaries of the establishing Lee family to fortify their grasp on the worldwide cell phone pioneer, the crown gem of the Samsung Group business realm. Elliott proposed a split in October to help shareholder esteem.
Samsung's top managerial staff will meet on Tuesday and react to Elliott's recommendations, the daily paper said. The Korea Exchange independently requested that Samsung remark by 6 p.m. (0900 GMT) on whether it arranged a spinoff.
The organization did not quickly remark on the daily paper report.
The speculative stock investments needs Samsung Electronics to separate into a holding vehicle for proprietorship purposes and a working organization, pay a $26 billion unique profit, vow to return no less than 75 percent of free income to financial specialists and consent to delegate some autonomous executives.
Neither the Lee family nor Samsung Group have remarked on rebuilding arranges, yet the aggregate's redesign endeavors have quickened since Jay Y. Lee assumed control over the reins after his dad and Samsung patriarch Lee Kun-hee was debilitated after a May 2014 heart assault.
Samsung has sold non-center resources while pushing through a merger of two partners in 2015 to unite stakes in key members under an organization controlled by Jay Y. Lee and his two sisters, as the establishing family moves to secure a steady exchange of control.
"Regardless of the possibility that Samsung Electronics does not remark on specifics, for example, the planning of a split … the firm will at any rate say it will execute proprietorship structure changes in a sensible way," HI Investment said in a give an account of Monday.
(Announcing by Se Young Lee; Editing by Stephen Coates)