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South Korea: Samsung sells stake to KCC to push merger

By  |  June 10, 2015

South Korean builder Samsung has lined up an ally to fend off a challenge from a US activist fund and push through a proposed $8 billion merger seen key to allowing a smooth leadership succession at Samsung Group.

Samsung C&T said on Wednesday it would sell 9 million common treasury shares to construction materials firm KCC $608 million in a deal that would be completed by Friday and make KCC the fourth-largest individual shareholder in the company.

KCC is also a major shareholder in Cheil Industries, the Samsung Group affiliate that proposed the all-stock takeover of Samsung C&T in the latest of a series of restructurings at South Korea’s biggest family run-conglomerate.

Analysts said the deal with KCC secures support for the merger that would allow the Samsung Group’s controlling Lee family to consolidate the merger.

Full content: The Korea Times

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