Samsung Electronics Might Split To 2 Different Entities Soon - Here's Why

South Korean multinational conglomerate – Samsung Electronics might split to 2 different entities soon. The current restructure the company is undergoing is expected to strengthen its growing business propositions and cut loose those not working in its favor. This was proposed by U.S. activist hedge fund Elliott Management.

The hedge fund is of the opinion that a split will enable the heirs of the founding Lee family – who’ve joined the higher ranks just recently – to strengthen their grip on the most-valued ‘smartphone’ division of the company.

However, Samsung’s board of directors will meet on Tuesday and respond to Elliott’s proposals.

Samsung Electronics Might Split To 2 Different Entities SoonIf this restructuring process is successful then the deal would also involve paying a $26 billion special dividend, pledging to return at least 75 percent of free cash flow to investors.

Also, Samsung would have to agree to appoint some independent directors and high-level officials for the two business entities it will split into.

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