SEOUL (Reuters) – Shares in Samsung Electronics Co Ltd and affiliates rose on Monday after the death a day earlier of Chairman Lee Kun-hee sparked hopes for restructuring and stake sales, analysts said.
Investors were betting that such measures would be needed to pay a hefty inheritance tax, estimated around 10 trillion won ($8.9 billion) for stockholdings alone, although analysts were divided on which moves were most likely.
Shares in Samsung C&T and Samsung Life Insurance rose as much as 21.2% and 15.7% respectively, while shares in Samsung BioLogics, Samsung SDS and Samsung Engineering also rose.
The inheritance tax is outrageous, so family members might have no choice but to sell stakes in some non-core firms” such as Samsung Life, said NH Investment Securities analyst Kim Dong-yang.
Investors have long anticipated a shake-up in the event of Lee’s death, hoping for gains from any restructuring to strengthen de facto holding company Samsung C&T’s control of crown jewel Samsung Electronics, such as Samsung C&T buying an affiliate’s stake in the tech giant.Read More. http://Samsung affiliates’ shares rise after Lee’s death sparks hopes of shake-up