28 Apr 2016 11:43
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.
Real Estate Lease Agreement
- Real Estate Lease Agreement of Property with an Affiliated Company (i.e., Lease of Office Space to Samsung Life Insurance)
□ Major Transaction Terms
Owner of Property | Samsung Electronics Co., Ltd. |
Lease Period | 5/1/2016 ~ 4/30/2018 |
Transaction Amount | KRW 16,865 million/year |
Purpose of Transaction | Lease of office space |
Terms and Conditions | 1. Down Payment: KRW 13,847 million 2. Annual Rental Payment: KRW 16,616 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 (excluding three months of construction period, in the first-year transaction). |
Other Information:
ž Number of Independent Directors Present at the BOD Meeting: 5
ž Attendance of Audit Committee: Y
Receipt of Security Interest
- Receipt of Security Interest from an Affiliated Company (Samsung Life Insurance)
□ Major Transaction Terms
Owner of Property | Samsung Electronics Co., Ltd. |
Security Period | 5/1/2016 ~ expiration (expires on the repayment of down payment) |
Security Deposit Amount | KRW 13,847 million |
Max. Guaranteed Amount | KRW 16,616 million/year |
Terms and Conditions | Security Interest (Collateral) Agreement for Lease \* The Maximum guaranteed amount is equal to 120% of security amount. |
Other Information:
ž Number of Independent Directors Present at the BOD Meeting: 5
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)