Samsung SDI Co., the battery and chemical arm of South Korea’s top conglomerate Samsung Group, decided Monday to spin off the chemical business in the runup to its handover to Lotte Group.
In an emergency meeting, shareholders of Samsung SDI agreed to establish the entity, tentatively named SDI Chemical, next month and eventually sell its 90 percent stake to Lotte Chemical Corp. by the end of the first half.
In October, Samsung Group agreed to sell its chemical assets to Lotte Group for about 3 trillion won ($2.5 billion). Under the plan, Lotte Chemical will acquire a 31.5 percent stake in Samsung Fine Chemicals Co. and buy the stake at Samsung SDI’s chemical unit.
Following the spin-off, Samsung SDI will focus on its electric vehicles and battery businesses.
“Samsung SDI will funnel the proceeds from the sale of the chemical unit into the electronics vehicles segment,” CEO Cho Nam-seong said in opening remarks. “The company will invest more than 3 trillion won till 2020 to emerge as a global leader in the car battery business.”
The latest deal is the second of its kind since Samsung’s de facto head Lee Kun-hee was hospitalized in 2014, temporarily handing over the post to his son Jae-yong. Since then, Samsung has been making various restructuring efforts to pave the way for the management inheritance.
In 2014, Samsung also sold four of its defense and chemical units to the Hanwha Group, a deal estimated at around 1.9 trillion won.
Samsung SDI earlier reached an agreement with workers of its chemical arm to guarantee their jobs and improve labor conditions after the spinoff. (Yonhap)
Source: The Korea Herald
Neste Corporation’s Board of Directors has appointed Heikki Malinen, M.Sc. (Econ.), MBA (Harvard) as the President and CEO of Neste as of 2 November 2024, at the latest. Malinen joins Neste from Outokumpu Corporation where he has held the position of President and CEO since 2020.
Petrochemicals company Sasol has announced that CFO and executive director Hanré Rossouw will step down from his position, effective October 31. Sasol has started the process to appoint a successor. Rossouw will still oversee the publication of Sasol’s reports for the financial year ending June 30, to allow for a structured handover period.
Chemours announced its CFO Jonathan Lock has resigned from all positions within the company, according to an SEC 8-K filing on April 23. The resignation comes in the aftermath of the company announcing that Lock, former CEO Mark Newman, and principal accounting officer Camela Wisel, had been placed on administrative leave.