SEOUL (Reuters) - South Korea’s Samsung SDI (006400.KS) said on Tuesday it would sell shares worth 582 billion won ($546 million) in affiliate Samsung C&T Corp (028260.KS) to resolve cross-shareholding ties and secure funds for investment.
The announcement comes after the country’s antitrust agency said in December that SDI would have to sell Samsung C&T shares in order to comply with stricter guidelines on cross-shareholdings.
Samsung SDI said in a regulatory filing that it would sell the Samsung C&T shares on Wednesday.
“Samsung affiliates have made various efforts to improve the board’s openness and diversity, and has recently announced a plan to resolve cross-shareholding ties,” Kim Sang-jo, head of the Korea Fair Trade Commission, said in a radio interview.
However, Kim said that Samsung has more to do in terms of improving its ownership, adding he hopes changes will begin when trials on charges of bribery and embezzlement against Samsung Group heir Jay Y. Lee come to an end.
Lee, vice chairman of Samsung Electronics (005930.KS), walked out a free man in February after an appeals court suspended his sentence. The case is currently assigned to the Supreme Court, after it was appealed again.
Samsung C&T shares closed up 4 percent while SDI shares closed down almost 3 percent, versus a 0.3 percent rise in the wider market .KS11.
Reporting by Joyce Lee and Ju-min Park; Editing by Himani Sarkar