SEOUL KOREA - Cheil Worldwide decided to sell 220 billion won worth of its own shares to Samsung Electronics as part of an effort to improve its financial standing.
According to a joint statement issued by Cheil Worldwide and Samsung Electronics on November 26, Cheil Worldwide will sell 11,502,208 shares of its own stock to Samsung Electronics for 220.8 billion won. The stock will be sold at a per-share price of 19,200 won, the closing price of the day.
Prior to the opening of the stock market on November 27, Cheil Worldwide will sell the stocks to Samsung Electronics on a block deal basis.
With this deal, the number of Cheil Worldwide’s own stocks will fall to 5.96 percent or 6,862,500 shares, while the number of Cheil Worldwide shares owned by Samsung Electronics will increase up to 14,498,725 shares.
Accordingly, Samsung Electronics’ stake in Cheil Worldwide will increase up to 12.61 percent, narrowing the gap with the largest shareholder Samsung C&T which has a 12.64-percent stake in Cheil Worldwide.