“You have to throw away Samsung C&T shares to buy.” KCC
, a pan-modern singer, is known as the메이저사이트 ‘white knight in the business world’. At one time, he gained a reputation as a friendly shareholder of the Samsung and Hyundai owner families. In 2015, he bought a stake in Samsung C&T, which was under threat of management, and contributed as a ‘Samsung white knight’. However, when trillions of ‘money’ was tied up in Samsung C&T stocks, KCC shareholders’ dissatisfaction grew. Demands to sell stocks of Samsung C&T, which have no strategic value, and invest in places that will increase corporate value also grew stronger. The background of such demand is the sluggish work on governance restructuring, which will boost Samsung C&T’s share price. On the 9th, KCC shares closed at 209,500 won in the stock market, down 2.56% (5,500 won) from the previous day. On September 17, 2021, the company’s stock price, which soared to 477,000 won during the day, is walking downhill every day. On the 9th, KCC’s market capitalization was 1,861.7 billion won. The company’s market cap is less than the value of its shares. The value of KCC ‘s stake in Samsung C&T, which reflects the previous day’s closing price (104,000 won), is 1.769 trillion won. The holdings of HD Korea Shipbuilding & Marine Engineering (3.91% stake) amount to 338 billion won. The value of its stake in Momentive Performance, a US silicon subsidiary, exceeds 1 trillion won. Momentive Performance is pursuing an IPO in the US.
It is evaluated that the paint business, the company’s flagship, has been sluggish, which has weighed down the stock price. Some point out that Samsung C&T and other non-core assets should be liquidated to raise corporate value.
In January 2012, KCC bought a 17.00% (425,000 shares) stake in Samsung Everland (now Samsung C&T), which was unlisted, and then in 2015, bought a stake in Samsung C&T worth KRW 674.3 billion. In the case of the purchase in 2015, it was to support the defense of Samsung C&T’s management rights, which was attacked by Elliott Management, a US activist fund. Even at the time, there were many evaluations that ” KCC has taken on the role of white knight for Samsung Electronics Chairman Lee Jae-yong.”
The value of Samsung C&T owned by KCC was 1.769 trillion won based on the closing price the previous day, 63.6% higher than the purchase price (1.811 trillion won). However, it is evaluated that the strategic and profit value of the Samsung C&T stake held for 11 years is not high.
Shares of Samsung C&T rose 0.29% (300 won) to close at 104,000 won the previous day. On January 15, 2021, after taking 160,000 won intraday, it is on a downward trend. The material that boosts Samsung C&T’s stock price is the issue of corporate governance reform. However, the process of restructuring the governance structure is not expected to speed up. This is because of circumstances such as Chairman Lee Jae-yong being tried for ‘unfair merger of affiliates and accounting fraud’.
Samsung’s governance structure is linked to ‘Chairman Lee Jae-yong and other family members → Samsung C&T → Samsung Life Insurance → Samsung Electronics’. IBIn the industry, Samsung C&T and others are expected to transform into Samsung Group holding companies in the process of governance restructuring. It is predicted that the reorganization will be ‘Chairman Lee → Samsung C&T holding company → Samsung Electronics’. In this process, Samsung C&T’s share price may rise, but it is evaluated that the time will not come soon. This is the background to the increasing number of KCC shareholders saying that Samsung C&T shares should be sold .