World Economy

Samsung Sells Shares in Several Firms

Samsung Sells Shares in Several FirmsSamsung Sells Shares in Several Firms

Tech giant Samsung has sold shares in four companies, including ASML Holding NV and Seagate Technology Plc, to free up money for additional investments for its core businesses it announced on Sunday.

Samsung said in a statement it sold about half of its shares in ASML while selling its entire 4.2% stake in Seagate. The company also sold its 0.7% stake in Sharp Corp. and its 4.5% stake in Rambus Inc.

A Samsung spokeswoman told Reuters the total proceeds from the sales exceeded one trillion won ($888.85 million) but declined to give further details, including when the shares were sold.

A term sheet seen by Reuters on Sept. 8 showed Samsung was selling about half of its stake in ASML for €606 million ($675.99 million). The company’s stakes in Rambus, Seagate and Sharp were worth a combined $456.4 million based on closing prices on Friday.

Samsung Electronics and other affiliates of Samsung Group have been divesting from non-core operations, as South Korea’s top conglomerate seeks to narrow its focus and secure more resources for its main businesses.

“There is no impact on business cooperation with the relevant companies,” the South Korean firm said without elaborating.

Some spectators could assume the damage from the Galaxy Note 7 is one of the reasons for the sudden need for cash.

Samsung Electronics Co was sued on Friday by a Florida man who said he suffered severe burns after his Galaxy Note 7 smartphone exploded in his front pants pocket.

The lawsuit by Jonathan Strobel may be the first in the United States by a Samsung phone user against the South Korean company over a battery defect linked to the Note 7.