Pressure from investors has pushed Samsung to consider a significant restructure that would include the company splitting itself into two entities. The restructure would implement a new corporate structure and establish a holding company. External advisers have been consulted on the matter.
A primary complaint regarding the current structure is that a clear separation doesn't exist between Samsung Group and Samsung Electronics. This makes valuing the latter difficult.
With the creation of a holding company, Samsung Electronics would be clearly separated from Samsung's other businesses.
The company is also aiming to please shareholders by increasing returns by one-third, returning half of its free cash within two years, and accelerating its share buy-back program. |