Palliser Pushes Samsung to Buy Back Discounted Preferred Shares
More than 86 trillion won, or approximately $64.24 billion, in value is tied up in South Korea’s deeply discounted preferred shares, according to an analysis cited by UK-based activist fund Palliser Capital. The fund has urged Samsung Electronics and Hyundai Motor to prioritize buying back and retir
UK-based activist fund Palliser Capital has urged Samsung Electronics to prioritize the buyback and retirement of its deeply discounted preferred shares to enhance shareholder value. Palliser's analysis indicates that the preferred shares, which are tied up with over $64.24 billion in value, are significantly undervalued, with an average discount of 46% compared to the roughly 5% discount seen in major developed markets.
The fund has proposed three key measures for Samsung, including prioritizing preferred-share buybacks, setting a target to narrow the discount to around 10% in its 2027-2029 shareholder-return plan, and potentially issuing ADRs in the United States to use the proceeds to buy back cheaper preferred shares listed in South Korea.
Brief written by urgent.news from BusinessKorea's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
