Samsung is the tech giant and a leader among its sheer group, we all know that. It is increasing its market in all possible ways to increase the market value of the sheer. But who would expect that Samsung Electronics is considering splitting into two!
Yes it’s breaking news to all the tech lovers.
Let us peek into the details why Samsung Electronics is considering splitting into two
The South Korean tech giant is considering splitting their Electronics division into two to avoid the pressure from its investors. As there are chances to buy more shares, and to manage them in a single large division is high, they consider splitting the firm.
As the Note7 has got halted and created some unfaithfulness to the organization, the pressure to split has become more to handle.
Lee Jae-Yong, Vice Chairman would take over the charge as Chairman from his father as a necessary move to continue the firm into profits.
Samsung would raise the dividend by 36% from 2016 and would pay out their free cash flow to its shareholders for 2016-17 financial year.
To improve the governance they will nominate at least one new independent international board member and create a separate governance committee.
The reason behind split
The sources say, to clear the firm’s assets for the valuation of the firm, the company decided to split.
Wider Samsung group companies are linked complicatedly through a web of cross shareholding, currently. Samsung electronics are linked to many other Samsung firms and its affiliates like insurance business, heavy industries and shipping. This is what making the investors difficult to make a clear view on what individual firm is actually worthy.
Under the chairmanship of Lee Jae-Yong Samsung is planning to invest more on future products to run the organization into profits.
Finally, the proposal of Samsung Electronics split has won its support from many investors of the group. It is also considered that the company would give more control to the founding family, Lee behind the organization.