Samsung split into two companies can solve domestic trouble and foreign invasion
beijingshangbao· 2016-12-02 08:56:32
" in November 29th, Samsung announced that the company is considering whether to split into two companies, in order to enhance long-term shareholder value, but behind this decision is facing enormous pressure on the operation of samsung. Note 7 Incident, coupled with the subsequent recall and bribery of the washing machine scandal, and now Samsung has scarred, and in the mobile phone and home appliances market, Samsung is facing a strong challenge from competitors. Insiders expressed concern on the Samsung business prospects "reorganization" fission, in the future will be a Samsung recycling, or just to please the capital market through short-term behavior, is still unknown.
split in November 29th, Samsung said in a statement, will increase the cash return to shareholders, in the next two years will be 50% of its own cash flow for return of shareholders. Samsung has said before the end of 2017 plans to 30%-50% cash flow about 5 trillion and 700 billion won for the return of shareholders. Samsung Electronic Computing, the shareholders will return to the cash plan to increase to 9 trillion and 500 billion won (about 8 billion 100 million U.S. dollars).
this statement, Samsung said it will consider proposed by shareholders to increase international investment to set up independent director seats, the statement pointed out that Samsung is looking for global business experience of the "high-quality" directors, and plans to add at least one new independent director in March 2017 at the annual shareholders meeting.
in addition, Samsung will consider the future of the company will be converted into investment holding public companies, which will weaken the control of the founder of the third generation successor to a certain extent. The statement said, in the past few years, has been taking measures to simplify the business, focus on core competence, to determine the optimal structure is highly complex, involving important strategy, operations, legal, regulatory and financial considerations, the company has hired external consultants for in-depth study of enterprise structure optimization. Samsung Electronics decided to adopt some of the recommendations of the investors, the company's enterprise architecture assessment. And the company split and specific in the U.S. capital market regulation market, there is no determination of the response. Samsung says it takes at least 6 months to explore the new structure.
Samsung to make this decision from the United States in October this year, a proposal made by the United States hedge fund. U.S. hedge fund holdings of 0.62% shares of Samsung, the company recommends that Samsung Electronics into a holding company, after splitting in Seoul and the United States were listed on the nasdaq. It is understood that Samsung's other fund shareholders such as APG and HGI also support the above recommendations.
this year an eventful year for Samsung is undoubtedly an eventful year.
in August, in South Korea and other countries in the case of a number of Samsung Note 7 battery explosion, and then, the incident spread to the global market. The global mobile phone market accounted for the largest share of Korean enterprises in more than two months, with dozens of mobile phone Note 7 fire accidents, not only failed to control the accident volume growth, even to the cause of the accident is still not sold convincing, finally to suspend production Ceng Ye ambitious Note 7.
but the incident to Samsung to bring the trauma is immeasurable, in the industry view, Samsung not only to bear the economic losses of more than ten billion yuan, but also to face the event brought to the brand damage. World communication network editor Liu Qicheng believes that Samsung in the event of being hurt is not completely brand with money can be measured, consumers will oppugn to Samsung products, thereby affecting the market performance of Samsung products, this is Samsung so many years a bank for a maximum, so the scale of multinational companies a big blow.
but it is far from over, after the mobile phone recalls, Samsung Electronics America announced a voluntary recall of some quasi production since March 2011 about 2 million 800 thousand sets of hood type washing machine, said large clothing in high speed swing mode, washing machine barrel are out of balance, and thus lead to excessive vibration and cause the risk of top off.
then, due to the alleged bribery to South Korean President Park Geun Hye bestie, Samsung is South Korea prosecution investigation. Prosecutors suspect that Samsung's Secret bribery of the two bodies is also Cui Shunshi, 53 companies in South Korea's 19 companies of the total contributions of hundreds of billions of dollars, Samsung donated most. In November, South Korean prosecutors suddenly check Samsung headquarters in Seoul, seized computer hard disk, books and other related documents. Prior to this, the prosecutor has been summoned a number of Samsung executives, including Samsung Electronics vice chairman Li Zairong.
while Samsung suffered a series of strikes at the same time, Samsung's competitors have a strong impact on the market. HUAWEI last month released a high-end annual flagship Mate 9, its mobile phone profits even more than three stars.
Jackdaw Research There are both advantages and disadvantages. analyst Jan Dawson said, although Samsung is not considering a spin off of a direct response to the recent series of events, but it can become a part of Samsung to re evaluate its long-term structure.
"reorganization" in the future will be a Samsung recycling, or in order to please the short-term capital market behavior analysts are still unable to agree on which is right arm. Home appliance network editor in chief Li Tao believes that from the statement released by the Samsung Electronics, the company's proposed structural reforms proposed by the company expressed sufficient sincerity. Research Constellation analyst Holger Miller also said that the spin off can enhance the focus of samsung. After the spin off of the total valuation of the business will be more than a number of business integration of the valuation.
, but the current Samsung Electronics is mired in product failure to extricate themselves from the crisis in addition to the group involved in the political scandal, is clearly not an immediate implementation of the good time window." Li Taoru is saying.
foreign analysts believe that Samsung's ownership structure is very complex, restructuring can simplify the structure, enhance corporate transparency, to increase the value of samsung. Some investors believe that if the Lee family of Samsung and other subsidiaries increased ownership of shares in the company, they can get more returns. Samsung chairman Li Jianxi has been 74 years old, if he died, Li Zairong and his two sisters need to pay billions of dollars in estate taxes.
however, there are experts said, Samsung Electronics to the holding structure of the transfer needs to consider a number of potential factors, such as changes in the tax and other regulatory aspects. It is reported that South Korean legal requirements, the holding company must hold a listed subsidiary of at least 30% of the shares. If really split, Samsung Electronics must buy a subsidiary stock, such as Samsung SDI, Samsung motor, Samsung SDS shares, so as to meet the requirements of the law, the spending could reach billions of dollars.
Beijing Business Daily reporter learned that Samsung electronics industry related to the chip manufacturing, consumer electronics, mobile phones, batteries and other fields. Samsung Electronics over the past ten years, the implementation of the 27 cross-border mergers and acquisitions, and in this year's investment, including the United States Haman, QDvision, Canada NewNet, including 7 overseas enterprises. If the statement is true in the middle of 2017, must first will be its radical industrial restructuring. Is expected to chip manufacturing and manufacturing business as their core two screen after the split, but the new layout of the car business should also be considered independently listed, which means that the commitment to reform will There was no parallel in history. to calculate the years long. (Beijing Daily reporter Jin Zhaoli Shi Feiyue)