The company expects a transformation towards a holding company to have undesirable effects on shareholder value and long-term growth.
Since November 2016, Samsung has been discussing the idea of simplifying its capital structure. This matter was placed high on the agenda by the many investors in favor of a more transparent system.
The board of directors said that “it determined a holding company would not improve shareholder value because it would then fall under laws that could weaken the conglomerate’s influence on group companies in the insurance and other financial fields. In addition, the board said a commercial law that could disadvantage a holding company structure might be introduced.“
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