Lee plans to acquire 7,188,793 common shares from Hong, honorary director of the Leeum Museum of Art, at Wednesday’s finishing price of 269,500 won putting the planned transaction at 1.937 trillion won, said the filing issued after the market closed in Seoul.
The transaction is scheduled to settle on Oct. 12 and is described in the filing as an acquisition of shares from a related party.
Lee currently owns 97,551,953 Samsung Electronics shares, equivalent to a 1.47 percent stake. Upon completion of the planned purchase, his holdings would increase to 104,740,746 shares, raising his ownership to 1.58 percent.
The shares to be acquired represent about 0.11 percent of Samsung Electronics' outstanding shares.
The filing did not specify a broader purpose for the transaction beyond acquiring shares from a related party, nor did it disclose how Hong intends to use the proceeds.
Hong nevertheless is expected to use the proceeds to repay loans from financial institutions that she took out to fully cover inheritance taxes stemming from the estate of late Samsung Group Chairman Lee Kun-hee.
The family is also seen as having chosen a direct off-market transaction between major shareholders to minimize the potential impact on Samsung Electronics’ share price that could result from a large sale on the open market.
AJP Takeaways:
- Samsung Electronics Chairman Lee Jae-yong plans to buy 7.19 million Samsung Electronics shares from his mother, Hong Ra-hee, in an off-market transaction.
- The planned deal is valued at 1.94 trillion won based on Samsung Electronics' Sept. 8 closing price.
- Lee Jae-yong's stake is expected to rise to 1.58 percent from 1.47 percent after the transaction
Copyright ⓒ Aju Press All rights reserved.
