Samsung Electronics Latest News & Update: Tech Giant Sold $1 Billion Worth of Stocks to ASML, Seagate, Sharp, Rumbus
Four companies including ASML Holding NV, Rambus Inc., Seagate Tech and Sharp Corp bought more than half of Samsung Electronics' stock for combined $1.1 billion.
Samsung Electronics is easing some resources to gain additional funding for core businesses capitalization. Bulk of stocks which comprise 50 percent were sold to ASML Holding NV for $675 million. Rambus Incorporated bought 4.5 percent, Seagate Technology at 4.2 percent while Sharp Corp took less than one percent. The latter three companies had the stocks shakedown for $456 altogether.
South Korea's Samsung is pivoting from other investments to focus on core business, Reuters reported. There are several cooperation deals with other companies but Samsung sees that there is no impact on mainline business, according to same report. The Korean company also stressed that stocks sale does not affect any production nor operation. However, Samsung did not elaborate which particular aspect is not beneficial to the company.
Meanwhile, Korea Herald reported that Samsung vice chairman Lee Jae-yong is the proponent of the stocks sale. Lee wants the company to focus on flagship products like chips and smartphones to ensure quality and undivided attention.
To recall, the biggest buyer ASML Holding NV had partnership since 2012 to develop high-end semiconductors. For Seagate, the deal is untying the bond made in 2011 when Samsung sold its HDD business but received shares from the American company. While Rambus was a deal earlier in 2010 pushed to access patents for chip design held by the company.
One interesting stake deal is with Sharp. There is no clear connection yet with Samsung's smartphone to advanced LCD technology of Sharp, being a forerunner in quantum dot display.
These stocks selling deals were not the first for Samsung this month. The company totally gave up its printing business to US-based HP Inc. for $981 million in Sept 12.