11 Mar 2016 10:02
Transaction with Affiliate Company
Samsung Electronics Co., Ltd. (KS005930, KS005935, SMSN, SMSD) ("SEC") announced today that its Board of Directors have authorized the following related-party transaction with an affiliated company.
Changes in Real Estate Lease Agreement
- Changes in Real Estate Lease Agreement for Property Owned by an Affiliated Company (partial cancellation)
□ Major Transaction Terms
Owner of Property | Samsung Life Insurance Company |
Lease Period | 1/1/2016 ~ 12/31/2016 |
Transaction Amount | KRW 1,096 million /year |
Terms and Conditions | 1. Down Payment: KRW 900 million 2. Annual Rental Payment: KRW 1,079 million \* The transaction amount is equal to the annual rental payment amount plus the amount that is equal to 1.8% of the down payment amount. |
Other Information:
ž Number of Independent Directors Present at the BOD Meeting: 5
ž Number of Audit Committee Members Present at the BOD Meeting: 3
ž The purpose of this disclosure is to announce amendments to the existing real estate lease agreement with Samsung Life
Insurance Company following the decision to reduce the amount of space leased. For reference, the existing agreement
was disclosed on Nov 20, 2015, details of which were as follows.
- Transaction Amount KRW 8,238 million /year
(Down Payment: KRW 6,724 million, Annual Rental Payment: KRW 8,070 million)
※ 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 the value of such a transaction is greater or equal to KRW 5 billion and the counterparty is
a financial affiliate of the party required to make the disclosure.
Samsung El.gdr (SMSN)