SEOUL, Nov. 29 (Korea Bizwire) – Samsung Electronics Co. said Tuesday it has been reviewing the “possibility” of creating a holding company structure to improve the company’s corporate structure and enhance its transparency.
In a statement, Samsung said it will also increase total dividends in 2016 by 30 percent on year, bringing the annual dividend amount to 4 trillion won (US$3.4 billion).
“Samsung Electronics has taken steps to simplify its business to concentrate on core capabilities in the past several years and the company continues to review opportunities to optimize long-term value,” Samsung said in the statement.
“This includes the possibility of creating a holding company structure and the potential benefits and feasibility of listing the company’s shares on additional international exchanges,” it said.
Samsung said it will take about six months for the review to be completed.
“The review does not indicate the management or the board’s intention one way or another. The process is expected to require at least six months and Samsung Electronics will make a decision only after the review is complete,” it said.
The announcement came shortly after Samsung’s board of directors held a meeting earlier in the day, amid growing calls to improve shareholder value.
U.S. hedge fund Elliott Management proposed in October that Samsung split itself into two publicly listed firms — a holding company and an operating company — and pay a special dividend of 30 trillion won to “remedy” the company’s “excessive and inefficient capital structure.”
Currently, Samsung is moving to limit the damage done by the global recall of the Galaxy Note 7 at a time when Vice Chairman and heir apparent Lee Jae-yong has taken key leadership roles.
“We are committed to enhancing sustainable long-term value for our shareholders and to remaining good stewards of capital,” Kwon Oh-hyun, vice chairman and CEO of Samsung, said in the statement.