Sam­sung paves way for son to take helm

China Daily (USA) - - BUSINESS - By BLOOMBERG

Sam­sung Elec­tron­ics Co nom­i­nated Lee Jae-yong to its board to al­low the son of its ail­ing chair­man to take a more ac­tive role in strate­gic de­ci­sion-mak­ing.

Share­hold­ers will be able to vote on his ap­point­ment at an in­vestor meet­ing sched­uled for Oc­to­ber, the Su­won, South Korea-based com­pany said in an e-mailed state­ment onMon­day.

Chair­man Lee Kun-hee has been hos­pi­tal­ized for more than two years af­ter a heart at­tack in 2014, with his son grad­u­ally tak­ing a more ac­tive role in the di­rec­tion of the com­pany dur­ing that time. Sam­sung is the world’s big­gest maker of smart­phones, mem­ory chips and TVs.

The share­holder meet­ing will also vote on the com­pany’s de­ci­sion to sell its printer business to HP Inc for $1.05 bil­lion.

HP has agreed to buy Sam­sung Elec­tron­ics Co’s printer business for $1.05 bil­lion, bet­ting that it can grab share and gen­er­ate in­come, even in a shrink­ing global mar­ket.

The deal will add to earn­ings in the first full year, Palo Alto, Cal­i­for­ni­abased HP said in a state­ment onMon­day.

As part of the agree­ment, Sam­sung has com­mit­ted to buy $100 mil­lion to $300 mil­lion worth of HP shares on the open mar­ket af­ter the ac­qui­si­tion closes, the com­pa­nies said.

For Sam­sung, the di­vest­ment is part of a longert­erm push to fo­cus on more high-growth ar­eas.

“The sale of prin­ters makes per­fect sense be­cause the world of paper is go­ing away,” said Mark New­man, an an­a­lyst at San­ford C. Bernstein in Hong Kong. “Prin­ters don’t have much fu­ture.

It’s all go­ing to be screens and Sam­sung is the big­gest display maker in the world.”

“This is a ma­jor strate­gic move for HP,” En­rique Lores, pres­i­dent of Imag­ing, Print­ing & So­lu­tions at HP, said on a con­fer­ence call.

Lee Jae-yong

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