SEOUL - Shares in Samsung Electronics Co Ltd and affiliates rose on Monday after the death a day earlier of Chairman Lee Kun-hee sparked hopes for restructuring and stake sales, analysts said.
Shares in Samsung C&T and Samsung Life Insurance rose as much as 21.2% and 15.7% respectively, while shares in Samsung BioLogics, Samsung SDS and Samsung Engineering also rose.
Investors have long anticipated a shake-up in the event of Lee’s death, hoping for gains from any restructuring to strengthen de facto holding company Samsung C&T’s control of crown jewel Samsung Electronics, such as Samsung C&T buying an affiliate’s stake in the tech giant.
FILE - In this April 22, 2008, file photo, Samsung Group Chairman Lee Kun-hee, right, arrives to hold a news conference at the Samsung Group headquarters in Seoul, South Korea.
Lee has a 17.3% stake in Samsung C&T, which owns a 5.01% stake in Samsung Electronics, the global leader in smartphones and memory chips.
Samsung C&T also has a 19.3% stake in Samsung Life, the No.2 shareholder of Samsung Electronics.
He also held a 20.76% stake in Samsung Life worth about 2.6 trillion won, and a 2.88% stake in Samsung C&T worth about 564 billion won as of Friday’s closing.
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