Samsung SDS denies merger with Samsung C&T

[THE INVESTOR] Samsung SDS, the IT solutions unit of Samsung Group, on July 18 once again denied speculation that it will spin off its logistics business to merge it with Samsung C&T, the group’s construction and trading unit and de facto holding company.

“We have not been considering selling or splitting our logistics business to be merged with Samsung C&T,” the company said in a regulatory filing in the day. “We have no plan to do so in the future.” 

The announcement comes after Samsung SDS announced it will divide its logistics solutions business to foster competitiveness in the field. With no specific plans being revealed, industry watchers have speculated that the company’s logistics and IT solutions businesses could be merged to Samsung C&T and Samsung Electronics, respectively.

Minority investors are strongly opposing the spin-off plan that they claim could affect negatively the company’s stock prices.

Samsung SDS started the logistics business in 2012 and made its stock debut in 2014 on the local bourse. The company posted 2.6 trillion won (US$2.30 billion) in sales last year due to the strong demand from other Samsung companies, especially Samsung Electronics.

By Lee Ji-yoon (jylee@heraldcorp.com)