SEOUL, KOREA - The Samsung Foundation, one of the four largest shareholders in Samsung Life, will sell off more than a half of its holdings in the life insurer and cash in more than 500 billion won. The foundation decided to sell a 2.5-percent stake out of 4.68 percent in Samsung Life after the close of the market on June 19 and set out to enlist investors. 

 

The per-share price was set at 10,320 won, a 4-percent discount from the closing price of 104,500 won on the 19th. Once the block deal is successful, the foundation will be able to secure about 500 billion won in cash. Citigroup Global Markets Korea Securities and Credit Suisse are underwriters to the deal.

 

Established in 1982, the Samsung Foundation is currently running Samsung Medical Center and a total of 23 children's homes. The foundation received in 2006 a donation of the Samsung Life shares from late Lee Jong-gi, the former chairman of Samsung Fire & Marine and the son-in-law of Samsung Group founder Lee Byung-chull.

 

This is the first time for the foundation to sell a stake in the life insurer, although on May 9 it sold a 2-percent stake (50,000 shares) in Samsung Futures at the price of 3.5 billion won to Samsung Securities. Stock analysts said this is a move by the group to prepare for a post-Lee Kun-hee era by stocking up enough cash.