Samsung Card Co., one of South Korea's leading credit card firms, said Wednesday it plans to sell part of its stake in its unlisted affiliate Samsung Everland Inc., the de facto holding company of Samsung Group.
Samsung Card plans to sell a 20.64 percent stake in Samsung Everland and sent requests for proposals to foreign investment banks on Aug. 26, the company said in an e-mailed statement.
The company said it is reviewing various means including a block deal and initial public offering, but didn't clarify a sale schedule.
Samsung Card owns a 25.6 percent stake in Samsung Everland, which runs an amusement park and food and accommodation services.
The card company is required to lower its interest in Samsung Everland by April under a financial industry law that limits financial companies from holding more than a 5 percent stake in non-financial firms.
Market watchers said the stake sale, which is estimated to be worth more than 1 trillion won (US$911 million), is likely to spur changes in the 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.
Lee Jae-yong, the only son of Samsung Electronics Chairman Lee Kun-hee, holds a 25.1 percent stake in the amusement park operator, which lies at the center of the leading conglomerate's ownership structure.
Faced with rising 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, which shot up as much as 6.83 percent, were trading at 48,450 won on the Seoul main bourse as of 10:15 a.m., up 1.89 percent from the previous session. (Yonhap News)
