Samsung " Takes Over 3 Percent Shares of KT"

Samsung, LG, Hyundai, Daelim Industry, etc expressed intention for participation in subscription for selling stocks, which government possesses, in order to privatize KT (former, Korea Communication) that started on 17th.

More big companies than expected are taking part in subscription for offering public stocks, like SK also shows aggressive attitude in buying shares.

Following this, the subscription is likely to finish successfully by dividing shares evenly to several companies, which government aimed in the beginning.

Government is selling this time total of 28.36 percent , which it possesses, such as 14.50 percent stocks and 13.86 percent Exchange Bond (EB), and subscription for offering public stocks will close at noon on 18th.

▽ All `big three` such as Samsung, LG, SK are likely to participate = Samsung that was paid attention to due to participation in KT shares, announced on 17th, “ Samsung decided to take part in total 3 percent shares by group consortium such as Samsung Life Insurance takes over 2.4 percent shares and Samsung Investment Trust Management takes over 0.6 percent shares”.

Samsung Life Insurance will buy 0.8 percent stocks and 1.6 percent EB, total 7493,000 shares (431.4 billion won), Samsung Investment Trust Management will buy total 1,873,000 shares (107.8 billion won) such as 0.2 stocks and 0.4 percent EB.

Samsung concerned stressed, “ Samsung`s participation in shares has nothing to do with management of KT and finance member company takes over shares for managing assets purely”.

Samsung discussed measures to subscribe buying 5 percent shares through Samsung Electronics; however, it arranged final decision that only finance member companies will take part in it, after internal dispute.

As Samsung defined its participation following LG, possibility of SK`s participation is raised, too.

SK telecom will confirm buying 2~4 percent shares after holding director level meeting on 18th morning, the closing day for subscription.

SK telecom`s director of publicity, Shin Young-cheol stated on 17th afternoon, “we are positively discussing participation in shares; however, there is no confirmed decision yet. ”

On the other hand, LG electronics subscribed 3 percent shares (9,365,988 shares) combining 1 percent stocks and 2 percent EB, therefore, invested money is calculated to reach 539 billion won.

▽ Hyundai motors, Daelim also participate = Hyundai motors and Daelim industry decided officially their participation in shares on 17th and joined strategic investment companies that buy above 1.5 percent shares.

Hyundai motors decided to secure total 1.5 percent shares, buying 0.5 percent stocks, which is the minimum tender shares among investment companies and taking over 1 percent EB.

Daelim also decided in director`s meeting to secure 0.6 percent shares of KT including EB, by investing 100 billion won.

Daelim will have consortium with Hyosung and will secure total 1.5 percent shares.

In addition, Cheonghocom.net decided to take part in public offering, in the scale of 3 billion and 24 million won (56,000shares) and Intops also will subscribe 1 billion and 250 million won (11,000 stocks and 11,000EB).

Tae-Han Kim Jeong-Hun Park freewill@donga.com sunshade@donga.com