Samsung Electronics Chairman Lee Jae-yong plans to acquire 7.19 million shares from his mother, Hong Ra-hee, for USD 1.45 billion. The off-market deal will increase his direct stake in the company from 1.47 per cent to 1.58 per cent.

Samsung Electronics Chairman Lee Jae-yong plans to buy 7.19 million shares in the chipmaker from his mother, Hong Ra-hee, in a 1.94 trillion won (USD 1.45 billion) off-market transaction that will increase his direct stake in the company, according to a report by The Korea Herald.

Details of the Share Transaction

According to a Samsung Electronics regulatory filing Wednesday, Lee is scheduled to acquire 7,188,793 common shares from Hong, honorary director of the Leeum Museum of Art, on October 12, The Korea Herald reported.

The planned price is 269,500 won (USD 201.42) per share, based on Samsung Electronics' September 8 closing price, putting the transaction value at about 1.937 trillion won (USD 1.45 billion).

The disclosed price and volume remain subject to change under applicable regulations.

If completed as planned, Lee's Samsung Electronics holdings will rise from 97,551,953 shares to 104,740,746 shares. His stake, calculated against the company's total outstanding common and preferred shares, will increase from 1.47 per cent to 1.58 per cent.

The transaction transfers the shares within Samsung's controlling family rather than releasing another large block into the market, meaning the broader holdings of the company's largest shareholder and related parties would effectively remain unchanged.

Link to Inheritance Tax Payments

No specific reason for the transaction was disclosed. Market observers have linked Hong's continued share sales to financing associated with the roughly 12 trillion won (USD 8.97 billion) inheritance-tax bill imposed on the family following the 2020 death of late Samsung Group Chairman Lee Kun-hee.

The family completed its five-year instalment payments earlier this year.

Hong sold 15 million Samsung Electronics shares in an April block deal worth about 3.08 trillion won (USD 2.30 billion). That earlier disposal followed a trust agreement that explicitly cited tax payments and loan repayment as its purpose.

Whether proceeds from the latest transaction will be used to repay related borrowings has not been confirmed.

(Except for the headline, this story has not been edited by Asianetnews Editorial staff and is published from a syndicated feed.)