HI Investment & Securities Says

HI Investment & Securities announced on the 27th that changes in Samsung Group’s management structure will start to actually take effect and brought up a possibility of a spin-off from Samsung Electronics.

HI Investment & Securities analyzed that major prerequisites of changes in management structure is having Cheil Industries, which is at the peak, to become a holding company of Samsung Group and play a leading role in new growth power business and others as well as secure stakes of affiliates such as Samsung Electronics and others. It made a conclusion that all lies on Cheil Industries to sufficiently obtain Samsung Electronics’ stakes.

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<Samsung HeadQuarters in Gangnam. Picture = EtnewsDB>

“Because Samsung Electronics’ market capitalization is big, there is a high chance that this will start with a spin-off from Samsung Electronics. If a spin-off happens through support field and business field, value of support field can be greatly reduced.” said a researcher Lee Sang Hun. “Due to merging of Cheil Industries and support field of Samsung Electronics, it will be able to sufficiently secure stakes of most of Samsung Group and Samsung Electronics’ business’s stakes.”

Senior Reporter Kim, Seungkyu | seung@etnews.com