Last checked at 31 Oct 2018 08:04
Related party transaction with affiliate companies (Update)
Samsung Electronics Co., Ltd. (KS005930, KS005935, SMSN, SMSD) ("SEC") today announced that the details of the transaction with the following affiliated companies of SEC have been updated: Samsung Life Insurance Co., Ltd., Samsung Card Co., Ltd., Samsung SDI Co., Ltd., Samsung C&T Corporation and Samsung SDS Co., Ltd. The transaction was originally announced on November 20, 2015. The updated details are set forth below.
▫ Details
1. Date of Transaction: Nov 30, 2015-Nov 6, 2018
2. Items of Transaction: Distribution of the remaining amount in the escrow account
3. Value of Transaction:
(KRW million)
| First Distribution (Nov 30, 2015) | Planned Additional Distribution (Nov 6, 2018) | Total |
Samsung Life Insurance | 119,343 | 26,165 | 145,508 |
Samsung Card | 44,987 | 9,863 | 54,850 |
Samsung SDI | 28,191 | 6,180 | 34,371 |
Samsung C&T | 16,243 | 3,561 | 19,804 |
Samsung SDS | 5,934 | 1,301 | 7,235 |
4. Others
- The transaction is the distribution of funds remaining in escrow after the payments made in 1999 to financial creditor institutions for the losses of Samsung Motors, whose funds consisted of the proceeds from the sale of Chairman Kun-Hee Lee's personal holdings of Samsung Life Insurance stock. The first distribution was completed on November 30, 2015, and the additional distribution is the final settlement of the remainder from the first distribution and related lawsuit expenses.
- The amount to be distributed has been held in an escrow account held by SEC, in accordance with the escrow agreement signed with the creditor financial institutions on March 31, 2010. Based on a 1999 settlement agreement executed by affiliates of SEC and the creditor financial institutions, the remaining amount shall be distributed to the affiliates of SEC, whose claims were exempted from payment in the process of Samsung Motors' liquidation, in proportion to the amount of claims exempted.
- The transaction began on the date of the first distribution and will terminate on the date of the final settlement.
- The Board resolution by SEC on November 20, 2015 regarding the transactions approved the additional distributions.
※ This disclosure is in accordance with the Korean Fair Trade Act, which mandates that a company must disclose financial and real estate transactions in the event a transaction is worth KRW 5 billion or more and the counterparty involved is a financial affiliate of the party required to make the disclosure.