Samsung Heavy considers stock sale, sister firms’ participation in focus

Samsung Heavy Industries, a shipbuilding unit of the country’s top conglomerate Samsung, has included a stock sale in its latest self-restructuring program, spawning speculation that its affiliates, including Samsung Electronics, may join forces to salvage the embattled shipyard, industry sources said.

According to the sources, Samsung Heavy’s self-rescue plan to raise 1.5 trillion won ($1.26 billion), provisionally approved by its creditors, includes asset sales and a cut in the workforce.

But the plan did not elaborate on the size of the stock sale and other details, the sources said.

The creditors have reportedly asked for help from Samsung Group to get the shipyard back on track.

Samsung Electronics is the largest stakeholder in the shipyard with 17.62 percent, and other affiliates, such as Samsung Life Insurance and Samsung SDI, also own stakes.

Some market observers speculate that Samsung Electronics Vice Chairman Lee Jay-yong may participate in the potential stock offering.

Last year, Jay-yong, the group’s apparent heir, expressed his intention to buy stocks in Samsung Engineering, to help the group’s plant-engineering unit, improve its worsening financial footing.
Source: Yonhap