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Photo = Yonhap news |
[Alpha Biz= Kim Jisun] Samsung Life Insurance and Samsung Fire & Marine Insurance have decided to sell approximately KRW 280 billion worth of Samsung Electronics shares to mitigate risks associated with violations of the Financial Industry Restructuring Act (FIRA).
On Tuesday, Samsung Life's board approved the sale of 4,252,305 shares of Samsung Electronics for KRW 236.4 billion. Similarly, Samsung Fire & Marine announced the sale of 743,104 shares for KRW 41.3 billion.
The sale price is based on the closing price as of February 10, and the shares will be sold through an off-hours block trade before the market opens on February 12. The final transaction amount will be disclosed in a revised filing after the sale.
Following the transaction, Samsung Life's holdings in Samsung Electronics will decrease to 503.9 million shares, while Samsung Fire & Marine’s holdings will drop to 88.06 million shares. Their respective ownership stakes in Samsung Electronics will be reduced to 8.44% and 1.48%.
The companies stated that the decision was made to proactively resolve any potential violations of FIRA, which limits financial institutions to holding a maximum of 10% of a non-financial affiliate’s shares. The stake adjustment became necessary after Samsung Electronics announced a KRW 10 trillion stock buyback and cancellation plan last year, affecting the insurers' ownership percentages.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
