South Korean hedge Fund presses Samsung to buy back and cancel preferred shares
South Korean hedge fund Life Asset Management is urging Samsung Electronics to use part of its planned shareholder returns to repurchase and cancel preferred shares, arguing that the move could help close the substantial valuation gap with the company’s common stock, according to a report by Bloomberg.
South Korean hedge fund Life Asset Management is urging Samsung Electronics to repurchase and cancel preferred shares as part of its planned shareholder returns, according to a Bloomberg report. The fund is asking the technology giant to eliminate the significant valuation gap between preferred shares and common stock by the end of the year.
Life Asset, which has undisclosed holdings in Samsung, is pushing the board to consider the proposal at its upcoming October meeting. The hedge fund believes that targeting preferred shares for repurchase would be more efficient than common shares, as the company could cancel approximately 1.36 preferred shares for every common share repurchased.
The discount between preferred and common shares has widened to over 25%, attracting investor attention. Life Asset recommends that up to KRW73tn of Samsung's KRW110tn ($81.7bn) shareholder-return program should be allocated to share repurchases. The hedge fund's push for a buyback and cancellation program targeting preferred shares comes as Samsung prepares to deploy a significant amount of cash from its booming AI-driven semiconductor sector.
Written by urgent.news from Hedgeweek's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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