SEOUL, March 31 Battery maker Samsung SDI Co
plans to acquire electronics materials affiliate
Cheil Industries Inc by their swapping shares, in
the latest restructuring of South Korea's biggest conglomerate,
The group, whose around 435 trillion won ($407 billion) in
assets spans handsets to ship building to medical services, is
restructuring ahead of a widely expected transfer of ownership
to the third generation of the founding family.
Lee Kun-Hee, 72, chairman of group crown jewel Samsung
Electronics Co Ltd, has in recent years promoted his
children to top positions and shuffled affiliates.
Son Jay Y. Lee is vice chairman of Samsung Electronics,
elder daughter Boo-jin leads Hotel Shilla Co Ltd,
and younger daughter Seo-hyun is president of Samsung's fashion
Cheil Industries started in textile and fashion before
selling that business to unlisted affiliate Samsung Everland for
1.05 trillion won late last year, to focus on electronics
materials and chemicals.
SDI will acquire Cheil by offering Cheil shareholders 0.44
SDI share for each Cheil share they own.
"The acquisition will help Samsung SDI have better access to
Cheil's electronics materials assets and thus help improve our
competitiveness, and enable Cheil to expand its customer base
beyond electronics companies to the auto industry," SDI said in
a statement on Monday.
The merged company will have annual sales of around 10
trillion won, which SDI aims to boost to more than 29 trillion
won by 2020, the company said in the statement.
Shares of Samsung SDI rose 4.6 percent and Cheil gained 3.5
percent after the announcement, compared with a flat benchmark
Samsung has made a flurry of restructuring moves in recent
years. In 2013, unlisted screen manufacturer Samsung Display
sold its stake in a glass venture to Corning Inc, and
unlisted IT services company Samsung SDS bought network
equipment provider Samsung SNS.
($1 = 1069.3000 Korean Won)
(Reporting by Miyoung Kim; Editing by Christopher Cushing)