Samsung Electronics said it is not currently reviewing the issuance of American depositary receipts (ADR). However, it noted that it could keep the option open as one of the mid- to long-term measures to enhance shareholder value.
Samsung Electronics said on the 30th during its second-quarter earnings conference call this year, "Some media recently reported the possibility of our U.S. listing, but for now we are not reviewing the issuance of ADR."
Samsung Electronics explained that to decide whether to issue ADR, it must comprehensively consider not only the need for funding and the effect of expanding the global investor base, but also the additional burden of disclosure and administration.
The company said, "ADR is a structure in which a limited portion of shares are traded on a separate market," adding, "Depending on market liquidity and supply-demand conditions, there is a possibility that a value gap may arise between ADR and the domestic underlying shares." It added, "It is necessary to closely review whether this is a measure that delivers tangible benefits to all shareholders, including domestic shareholders who have trusted and invested in the company for a long time."
Samsung Electronics said it has secured stable cash generation based on a diverse business portfolio, so the need for new funding is not significant. However, it added, "From the perspective of enhancing shareholder value over the mid to long term, this is a matter that could be kept open as one of various options and reviewed."