Daily BriefsTMT/Internet

TMT: Samsung Electronics Pref Shares, Amazon.com Inc and more

In today’s briefing:

  • Samsung Family Stake Change Filings: Ramifications for SamE 1P Discount
  • Amazon 1Q21: The Fastest Growing Business in the World

Samsung Family Stake Change Filings: Ramifications for SamE 1P Discount

By Sanghyun Park

We saw a series of filings by Samsung affiliates on the major shareholder stake changes due to the inheritance.

Here are the links to the regulatory filings at DART of the three companies:

Samsung said that the late chairman Lee Kun-hee didn’t leave any will. So, the inheritance went at a 1/3 (spouse) to 2/3/N (each child) ratio, except for Samsung Life Insurance under the family members’ mutual consent.

As for Samsung Life Insurance, the mother, Hong Ra-hee, gave up on her share. Instead, Lee Jae-yong got 1/2, and Lee Bu-jin (elder daughter) received 2/3/2. The youngest one, Lee Seo-hyun, took 1/3/2.

Samsung Electronics Co LtdBeforeAfter
Hong Ra-hee0.91%2.30%
Lee Jae-yong0.70%1.63%
Lee Bu-jin0.00%0.93%
Lee Seo-hyun0.00%0.93%
Source: DART
Samsung C&T CorpBeforeAfter
Hong Ra-hee0.00%0.97%
Lee Jae-yong17.48%18.13%
Lee Bu-jin5.60%6.24%
Lee Seo-hyun5.60%6.24%
Source: DART
Samsung Life Insurance co., LtdBeforeAfter
Lee Jae-yong0.06%10.44%
Lee Bu-jin0.00%6.92%
Lee Seo-hyun0.00%3.46%
Source: DART

As a result, we can safely say that the entire Samsung Group is under Lee Jae-yong’s firm control.

  • He single-handedly controls 18.13% of Samsung C&T, the de facto holding company.
  • He then owns 29.28% of Samsung Life Insurance, including C&T’s 19.34% stake in Life.
  • Lastly, he governs Samsung Electronics with a 15.15% stake, including Life’s 8.51% and C&T’s 5.01%.
Lee Jae-yong’s controlling stake
Samsung C&T Corp18.13%
Samsung Life Insurance co., Ltd29.78%
 – Including the stake owned by Samsung C&T19.34%
Samsung Electronics Co Ltd15.15%
 – Including the stake owned by Samsung C&T8.51%
 – Including the stake owned by Samsung Life Insurance5.01%
Source: DART

Amazon 1Q21: The Fastest Growing Business in the World

By Aaron Gabin

Amazon’s businesses are booming. Retail is on a $400B runrate growing 45%. AWS $54B, growing 32%, Advertising $25B, growing 73%. We think the company is worth $3T or $6000 a share.

Obex’s fundamental research process is focused on secular change in the TMT and Consumer sectors. We seek to differentiate between fundamental business analysis and security analysis. Before deciding if a security’s pricing and positioning merit a long or short position, we analyze the four pillars of business fundamentals (Secular Factors, TAM, Competitive Advantage, Business Model) in order to determine if this is a “good” or “not so good” opportunity.

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