26 Apr 2018 09:40
Transaction with Affiliate Company
Samsung Electronics Co., Ltd. (KS005930, KS005935, SMSN, SMSD) ("SEC") on April 26, 2018 announced that its Board of Directors have authorized the following related-party transaction with an affiliated company.
Real Estate Lease Agreement
□ Major Transaction Terms
Owner of Property | Samsung Electronics Co., Ltd. |
Lessee | Samsung Life Insurance Co., Ltd. |
Lease Period | May 1, 2018-April 30, 2020 |
Transaction Amount | KRW 18,066 million/year |
Purpose of Transaction | Lease of office space |
Terms and Conditions | 1. Deposit: KRW 14,694 million 2. Annual rental payment: KRW 17,632 million - The deposit and annual rental payment (monthly rental payment *12) stated above apply to first year of the lease period and will increase reflecting the inflation rate in the second year. - The transaction amount above is the average yearly amount during the lease period, which is the sum of the first annual rental payment and subsequent adjusted annual rental payment, which is equal to 1.8% (the interest rate in accordance with relevant regulations) of the deposit amount. |
Other Information:
ž Number of Independent Directors present at the BOD meeting: 6 (100%)
ž Attendance of Audit Committee: Y
Provision of Collateral Security
- SEC to use the building and land in the transaction above as collateral to secure the deposit
□ Major Transaction Terms
Owner of Property | Samsung Electronics Co., Ltd. |
Related party | Samsung Life Insurance Co., Ltd. |
Collateral Security | Land and building |
Security Period | May 1, 2018 ~ (expires on the repayment of deposit) |
Guaranteed Amount | KRW 14,694 million |
Maximum Guaranteed Amount | KRW 17,632 million |
Terms and Conditions | - The date of security period may change. - The maximum guaranteed amount is equal to 120% of the guaranteed amount. |
Other Information:
ž Number of Independent Directors present at the BOD meeting: 6 (100%)
ž Attendance of Audit Committee: Y
※ 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)