Elliott affiliates urge Samsung Electronics to restructure, pay special dividend
The board of directors of Samsung Electronics was sent a letter by Samsung Electronics shareholders Blake Capital and Potter Capital, both of which are Elliott affiliates. The letter, which was made public by the senders, sets out certain restructuring, capital return, investor access and governance improvement proposals for Samsung Electronics. The Elliott affiliates say the key elements would comprise a demerger into a listed holding company, Samsung Holdco, and a listed operating company, Samsung Opco; a tender offer by Samsung Holdco to acquire further Samsung Opco shares; and a share for share merger, on fair terms, of Samsung Holdco with Samsung C&T. The also call for increased capital management efficiency via a special cash dividend of KRW30 trillion or KRW245,000 per ordinary share and the ongoing return of 75% of Samsung Opco's free cashflow to shareholders, along with a NASDAQ listing, in addition to KRX, for Samsung Opco and corporate governance improvements.