Samsung Card Co. said Monday it has decided to sell a 17 percent stake in its unlisted affiliate Samsung Everland Inc to KCC Corp. for 773.9 billion won (US$674.4 million).
Samsung Card said in a regulatory filing that its board has approved a plan to sell 425,000 shares in Samsung Everland, the de facto holding company of Samsung Group, to KCC, a local maker of construction materials for 1.82 million won per share.
The move will lower its stake in Everland to 8.64 percent from 25.64 percent.
Samsung Card is required to lower its holding in Samsung Everland by April under a law which bans financial firms from holding more than 5 percent of non-financial firms.
Samsung Card said the stake will be sold as of Jan. 31., adding that the proceeds will be used to beef up its business capability.
It also plans by April to unload a further 3.64 percent interest in Samsung Everland, which runs an amusement park and food and accommodation services.
The stake sale is likely to accelerate changes in the country's top conglomerate's complicated governance structure that involves affiliates Samsung Card, Samsung Everland, Samsung Life Insurance Co. and Samsung Electronics Co.
Samsung Everland is a key shareholder of the top life insurer, which owns a 7.4 percent stake in Samsung Electronics. The tech heavyweight, which is the crown jewel of Samsung Group, controls a 35.3 percent stake in Samsung Card.
In the face of growing public criticism, Samsung announced a plan in April 2008 to reform its governing structure, including a reduction in cross-share ownership.
Shares of Samsung Card fell 0.36 percent to close at 41,700 won on the Seoul bourse. (Yonhap News)
