In today’s briefing:
- Converting Samsung Life’s Samsung Electronics Stake to Long-Term Holdings: Clearing up the Confusion
- Seoul Guarantee IPO: Price Cut, Dividend Focus, But Overhang and Weak Earnings May Hurt
- Samsung Life Insurance: Implications of Classifying Samsung Electronics as a Long-Term Holding
- Seoul Guarantee Insurance Corp IPO Preview (Significantly Lower IPO Price Range)
Converting Samsung Life’s Samsung Electronics Stake to Long-Term Holdings: Clearing up the Confusion
- Samsung Life needs FSC approval for a 10-year holding plan on its Samsung Electronics stake. Without it, the whole plan could fall apart, so it’s all about regulatory green lights.
- If FSC approves Samsung Life’s long-term holding, they can’t sell those shares for at least 5 years—no exit strategy for the next half-decade due to regulatory rules.
- Samsung Life will convert part of its stake into long-term holdings, signaling how future buybacks and special dividends will balance in Samsung Electronics’ next shareholder return program.
Seoul Guarantee IPO: Price Cut, Dividend Focus, But Overhang and Weak Earnings May Hurt
- Seoul Guarantee Insurance is sticking to the same playbook, focusing on boosting dividend appeal, with a better price and the 100% secondary sell-down and KDIC stake dump still in place.
- There’s doubt about market interest, as the performance drop from 2023 to 2024 raises concerns over meeting the 200B KRW minimum dividend promise.
- Seoul Guarantee is Korea’s only pure-play surety insurer, tied to the domestic economy. The IPO lacks a growth plan to reduce this reliance, which would’ve been a key win.
Samsung Life Insurance: Implications of Classifying Samsung Electronics as a Long-Term Holding
- Samsung Life Insurance (032830 KS) is considering on a special measure of classifying its stake in Samsung Electronics (005930 KS) as a long-term holding stock of up to 10 years.
- If Samsung Life Insurance’s stake in Samsung Electronics is classified as a long-term holding, Samsung Life Insurance cannot sell Samsung Electronics stocks for at least 5 years.
- There is an increasing probability that if Samsung Life Insurance classifies its stake in Samsung Electronics as a long-term holding, the current ownership stake structure involving Samsung Group remains intact.
Seoul Guarantee Insurance Corp IPO Preview (Significantly Lower IPO Price Range)
- Seoul Guarantee Insurance Corp (SGIC) is trying for another attempt at an IPO at much lower IPO price range. The IPO price range is from 26,000 won to 31,800 won.
- At the high end of the IPO price range, the IPO offering size is 222 billion won. The IPO price range has been lowered by 34% to 39%.
- Despite the company’s consistent record of generating positive operating profit, its lack of sales growth and declining operating margins in 2024 remain key concerns.
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