Sam­sung ex­pands re­turns to in­vestors

China Daily (USA) - - BUSINESS - By BLOOMBERG

Sam­sung Elec­tron­ics Co will in­crease cash re­turns to share­hold­ers, add at least one out­side direc­tor and re­view its cor­po­rate struc­ture, adopt­ing­someof the changes pro­posed by ac­tivist in­vestor El­liott Man­age­ment Corp.

Sam­sung will spend at least six months look­ing at the pos­si­bil­ity of cre­at­ing a hold­ing com­pany struc­ture and the fea­si­bil­ity of list­ing the com­pany’s shares on ad­di­tional in­ter­na­tional ex­changes, South Korea’s most valu­able com­pany said in a state­ment onTues­day.

Sam­sung said it will also use 50 per­cent of free cash flow for share­holder re­turns for this year and next, com­mit­ting to the up­per end of a pre­vi­ously an­nounced plan to re­turn 30 per­cent to 50 per­cent of cash flow to share­hold­ers through 2017.

That in­di­cates a re­turn of 9.5 tril­lion won ($8.1 bil­lion) in 2016, based on free cash flow es­ti­mates.

Sam­sung will in­crease to­tal div­i­dends by 30 per­cent in 2016, bring­ing the an­nual div­i­dend amount to 4 tril­lion won. The rest of the al­lo­cated to­tal cash re­turn will be used to buy shares start­ing at the end of Jan­uary.

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