Date
25 March 2017
The global recall of 2.5 million Note 7 units could cost Samsung nearly US$5 billion in lost revenue this year, analysts say. Photo: Bloomberg
The global recall of 2.5 million Note 7 units could cost Samsung nearly US$5 billion in lost revenue this year, analysts say. Photo: Bloomberg

Samsung Electronics sells shares in four companies

Samsung Electronics Co. Ltd. said it sold shares in four companies including ASML Holding NV and Seagate Technology Plc to free up money for additional investments for its core businesses.

The technology giant sold about half of its shares in ASML while selling its entire 4.2 percent stake in Seagate, Reuters reports, citing a statement from the company.

It also sold its 0.7 percent stake in Sharp Corp and its 4.5 percent stake in Rambus Inc.

A Samsung spokeswoman told Reuters the total proceeds from the sales exceeded 1 trillion won (US$888.85 million) but declined to give further details including when the shares were sold.

A term sheet seen by Reuters on Sept. 8 showed Samsung was selling about half of its stake in ASML for 606 million euros (US$675.99 million).

The company’s stakes in Rambus, Seagate and Sharp were worth a combined US$456.4 million based on closing prices on Friday.

Samsung Electronics and other affiliates of Samsung Group have been divesting from non-core operations as South Korea’s top conglomerate seeks to narrow its focus and secure more resources for its main businesses.

“There is no impact on the business cooperation with the relevant companies,” the company said without elaborating.

On Friday Samsung was sued by a man from Boca Raton, Florida, who said he suffered severe burns after his Galaxy Note 7 smartphone exploded in his front pants pocket.

The lawsuit by Jonathan Strobel, 28, may be the first in the United States by a Samsung phone user against the South Korean company over a battery defect linked to Note 7.

It was filed one day after Samsung recalled about 1 million Note 7s sold in the United States.

Samsung has received 92 reports of batteries overheating in the US, including 26 reports of burns and 55 reports of property damage, US safety regulators said.

The global recall of some 2.5 million Note 7 units could cost Samsung nearly US$5 billion in lost revenue this year, analysts said.

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CG

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