Coronation at Samsung, investors cheer, shares zoom

Source :Sify
Author :Finance Desk
Last Updated: Mon, Oct 26th, 2020, 17:33:44hrs

Seoul: News of a probable coronation lead to a spurt in shares of Samsung Electronics Co on the South Korean exchange.  

The shares of the electronic major touched a high of 61,100 at the time of reporting this story.  

Tech giant Samsung Electronics, the group's crown jewel, traded 0.17 per cent higher; C&T, the group's de facto holding company, jumped 14.42 percent; and Samsung Life Insurance, which holds a stake in Samsung Electronics, rose 6.66 percent.

Lee Jae-yong, the only son of the Group Chief Lee Kuhn-hee is likely to replace the deceased chief.  

The 78 year old Kuhn-hee passed away on Sunday after a prolonged six year battle. He was hospitalized for a heart attack.  

Investors were likely to support the probability of a new heir taking over Samsung. It is also likely that Samsung could offer a higher dividend in order to secure funds for Jae-yong to pay for inheritance taxes.  

According to reports, Jae-Yong would bear an inheritance tax of a whopping $8.85 billion.  

As of end-June, the late chairman held a 4.18 per cent stake in Samsung Electronics, a 2.86 per cent stake in Samsung C&T and a 20.76 per cent stake in Samsung Life Insurance, among others. The value of his stock holdings is estimated at some 18 trillion won.

Jae-yong, the de facto chief of the group, holds a 0.7 per cent stake in Samsung Electronics, 17.33 per cent in Samsung C&T and more stakes in other affiliates, with the combined value of his stock holdings totaling 7.1 trillion won.