Samsung Electronics to Buy USD 192 Mn of SHI Shares
- Business & Finance
Samsung Electronics intends to participate in Samsung Heavy Industries’ (SHI) rights offering by investing KRW 204.06 billion (USD 191.8 million).
The technology company unveiled the decision to acquire 34.76 million shares in SHI in its stock exchange filing on April 6.
In December 2017, SHI informed about its rights issue plan worth KRW 1.56 trillion in order to improve liquidity. The issuance is expected to take place this month. With the capital increase, the financially troubled shipbuilder plans to pay corporate bonds and other debts maturing this year.
Additionally, in January 2018, SHI reached an agreement with three borrowers to secure the capital as it was looking to increase its short-term borrowings by KRW 750 billion.
At the end of 2017, Samsung Electronics held a 16.9 percent stake in SHI, according to Reuters.
World Maritime News Staff