The share price of Samsung and affliates went up on Monday after the death of Chairman Lee Kun-hee. The Demise of the chariman increase the hopes for stake sales, higher dividend and long awaited restructuring of the company.
LEE family has to Pay $8.9 Biilion in inheritancetaxes and how LEE family keep its firm grip on the company will be crucial element for bringing a change.
The share price for Samsung C&T went up by 21.2% and and 15.7% increased for Samsung life insurance. The other Samasung companies saw an increase in their share price. The departed chairman had most shares in Samsung life with 20.76% stake. His son has 17.3% shares in Samsung C&T.
NH Investment Securities analyst Kim Dong-yang said that due to inheritance tax, family members might have to sell stakes in some non-core firms. Another analysit Jeong Dong-ik said that It may be likely for Samsung C&T to consider increasing dividends for the family to cover such a high inheritance tax.
Lee, 78, died on Sunday, six years after he was hospitalised due to heart attack in 2014. Since then, Samsung carried out a flurry of stake sales and restructuring to streamline the sprawling conglomerate and cement the junior Lee’s control.
The Samsung chairman died at age of 78 but he restructure the company and give more power to his son Junior Lee back in 2014 when he start facing health issues.
Investors have been waiting for a long time for the re structuring of the company and now they see event of Lee’s death as a potential opportunity for restructuring and strengthing of Samsung and its afflaated companies.
It is hard to say that when we can see change in Samsung company because the new chairman Junior Lee is already facing two trials making it difficult for the group’s management to begin organisational changes.