Hong Ra-hee, honorary director of the Leeum Museum of Art, Hotel Shilla President Lee Boo-jin, and Samsung C&T President Lee Seo-hyun, among other members of the Samsung owner family, will sell Samsung Electronics shares worth about 1.8 trillion won. The sale is to pay inheritance taxes and repay stock-backed loans.
According to the financial sector on the 30th, after the market closes that day, the honorary director Hong, President Lee Boo-jin, and President Lee Seo-hyun will sell 17,716,000 shares of Samsung Electronics via a block deal in after-hours trading. The sale price is set at 102,200 to 104,100 won per share, for a total of up to 1.8442 trillion won.
After the transaction, Hong's Samsung Electronics holdings will decrease to 87,978,700 shares (1.49% equity). President Lee Boo-jin's holdings will be 41,745,681 shares (0.71%), and President Lee Seo-hyun's will be 45,574,190 shares (0.77%). The respective amounts to be disposed of are 10 million shares for the honorary director Hong, 6 million shares for President Lee Boo-jin, and 1,716,000 shares for President Lee Seo-hyun.
Earlier, the Samsung family signed a trust agreement with Shinhan Bank to dispose of Samsung Electronics shares, stating the purpose as "payment of inheritance taxes and loan repayment." Four family members, including Samsung Electronics Chairman Lee Jae-yong, have been paying a total of 12 trillion won in inheritance taxes in installments over five years since the death of the late Chairman Lee Kun-hee, with the final installment due in Apr. next year.
Honorary Director Hong and Presidents Lee Boo-jin and Lee Seo-hyun have secured inheritance tax funds by selling holdings in Samsung Electronics, Samsung C&T, and Samsung SDS or by using stock collateral loans. The recent strength in Samsung Electronics' share price is also seen as a reason for the sale.
Samsung Electronics' share price has repeatedly hit intraday record highs on expectations of strong earnings backed by a recovery in the memory chip cycle. The stock, which hovered in the 50,000 won range in Jun., has nearly doubled in about five months. Samsung Electronics closed the day up 3.58% at 104,100 won from the previous trading day.