Samsung Electronics reviews shift to holding company structure

Samsung Electronics reviews shift to holding company structure

Korean tech giant Samsung Electronics hasannounced a roadmap of actions aimed at increasing returns for its shareholders.

Among its plans,.

Samsung will also considershifting to a holding company structure.

Kim Min-ji has the details.

Samsung Electronics has unveiled a packageof measures aimed at improving the company's corporate structure as well as boosting shareholdersvalue.

After a board meeting Tuesday,.

Samsungsaid it will consider creating a holding company structure,.

and weigh the benefits and feasibilityof listing the company's shares on international exchanges.

Among the shareholder-friendly measures,.

Samsung said it will use half of its free cash flow in shareholder returns for thisyear and the next.

That's the higher tier of the previous planto return somewhere between 30 to 50 percent of cash-flow,.

which would translate intoover eight billion U.


dollars for this year.

Samsung added it would also increase totaldividends by 30 percent this year from a year ago — bringing the annual amount to roughlythree-point-four billion dollars.

Samsung said it's also seeking to nominateat least one new independent boardmember with global corporate experience.

This comes as U.


hedge fund Elliott Managementhas been calling on Samsung to split into two publicly listed firms — a holding companyand an operating company,.

as well as pay a special dividend to "remedy" what it callsthe company's inefficient capital structure.

Samsung said it has taken steps to simplifyits business to concentrate on core capabilities over the past several years and that the companycontinues to review opportunities to optimize long-term value.

The tech giant added that it's committed toenhancing sustainable long-term value for shareholders and to remaining good stewardsof capital.

Kim Min-ji, Arirang News.

Source: Youtube