Tech News : Top Tech. Manufacturing Company SAMSUNG Sets To Split Into Two Firms.... Details Here 👇

Samsung Electronics has confirmed it is considering dividing the company into two separate firms.

The company has been under pressure from some investors to break itself into a holding unit and an operating company to boost shareholder value.

The South Korean technology giant also announced plans to increase dividends and said it would continue to buy back more shares.

Restructuring pressure had been mounting after the Note 7 fiasco.

Samsung also said it would pay out half of its free cash flow to shareholders for 2016 and 2017 and raise the dividend for 2016 by 36% compared to the previous year.



In order to improve governance, the firm said it would nominate at least “one new, international, independent Board member” as well as create a separate governance committee.

The company’s statement comes after US activist hedge fund Elliott Management called for the firm to split into a holding unit for ownership purposes and a separate operating company.

The fund argued that a split would simplify the company structure making it easier to get a clear valuation of the firm’s assets.

Currently, companies within the wider Samsung Group are linked through a complicated web of cross shareholding, linking Samsung Electronics to many other Samsung’s firms and affiliates ranging from shipping, to heavy industries to insurance business, according to BBC report.

 

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