Samsung Card Surges Most in Two Years on Restructure Speculation
Stock Chart for Samsung Card Co Ltd (029780)
Samsung Card Co. shares surged the most in two years in Seoul amid mounting speculation management changes will hasten a restructuring of companies within Samsung Group.
Lee Kun Hee, chairman of the group’s flagship Samsung Electronics Co., said last week he will promote his son as part of an annual management reshuffle next month. That gave rise to speculation Samsung Card may sell a stake in Samsung Everland Inc., the de facto holding company of Samsung Group, according to Kim In, an analyst at Eugene Investment & Securities, and Choi Jung Wook, an analyst at Daishin Securities Co.
Lee Yun Dong, a spokesman at Samsung Card, declined to comment. Samsung Card, a credit-card issuer, owns 25.6 percent of Samsung Everland Inc. Samsung Electronics is the world’s largest maker of memory chips, televisions and flat screens.
“As management rights are handed down to the third generation, investors sought stocks that can benefit from the succession story,” said Eugene Investment’s Kim. “The stake sale will take time, but investors are pricing that in quickly.”
Shares of Samsung Card jumped 9.2 percent to 63,900 won at the close of trading on the Korea Exchange, the biggest daily gain since Nov. 24, 2008. The closing price was the highest level since October 2007.
Samsung Electronics climbed 3.7 percent to 848,000 won.
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