Samsung Engineering Jumps on Billionaire Lee's Offer to Aidby
Samsung Engineering Co. jumped the most in a month in Seoul trading on expectations the heir apparent of Samsung Group will support the company in a share sale slated for February.
Shares of Samsung Engineering jumped 14 percent to close at 12,650 won, the largest gain since Dec. 30. The stock, which jumped as much as 24 percent earlier in the session, was the best performer on the Kospi 200 index Friday.
Lee Jae Yong, vice chairman of Samsung Electronics Co. and Samsung Group’s heir apparent, is seeking to sell 1.59 million Samsung SDS Co. shares he owns to raise funds to buy all Samsung Engineering shares that aren’t taken up in the planned rights offering, the group said Thursday. The engineering company announced a plan in October to sell new shares to improve its financials after its debt exceeded assets at the end of September.
“Lee’s gesture that he is ready to step in shows that the family of Samsung Group is willing to try to revive Samsung Engineering,” Lee Kwang Soo, an analyst at Mirae Asset Securities Co. in Seoul, said by phone. “That is helping to gain confidence in Samsung Engineering shares among investors.”
Shares of Samsung SDS dropped 15 percent, the biggest decline since they started trading in November 2014. Samsung’s Lee owned 11.25 percent of Samsung SDS as of Sept. 30, according to the technology-services company’s third-quarter earnings filing.