Shake-up in key Samsung assets to cement heir’s grip as succession looms

Samsung Group's de facto holding company continues its reconstruction of South Korea's biggest conglomerate to smooth the path for management succession, offering more than $8 billion to buy an affiliate with a key stake in flagship firm Samsung Electronics.

Cheil Industries is offering new stock to buy building firm Samsung C&T Corp. After market jitters on Samsung’s overhaul, shares in both rose nearly 15 per cent, taking Samsung C&T’s value beyond the offer price to 10 trillion won.

The move combines what analysts consider two key companies in the sprawling family-controlled conglomerate. It would cement the position of heir-apparent and Samsung Electronics vice-chairman Jay Y Lee as Samsung prepares for the transfer of control from ailing patriarch Lee Kun-hee to his children. – (Reuters)