Samsung Electronics is considering splitting itself

Samsung Electronics would this week announce its position on a proposal to split the electronics company into a holding company and a subsidiary. An American mutual fund insisted on this at the end of October.

Samsung Electronics’ board of directors was scheduled to meet on November 29, after which its position on the proposal would be announced. That writes the Korean newspaper The Korea Economic Daily. “The board is carefully reviewing the proposals. We will take our position and share it in November,” Samsung announced at the end of October, when the quarterly figures were published.

The proposal comes from the American investment fund Elliott Management. A split would yield more results for shareholders. According to the proposal, Samsung Electronics must be divided into a parent company and an operational part. The electronics giant is already part of the Samsung Group conglomerate, but Elliott pointed out that the complex ownership structure is detrimental to Samsung Electronics. A split would allow the company to operate on an equal footing with competitors.