Samsung shares hit record high on back of Elliott proposals and Q3 profit growth


Samsung’s Galaxy note 7 problems can continue – a replacement units caught fire, recently as its owner of an aircraft – go was, but some days the last have brought good news for the company: its shares reached a new record high, and it expects to profit in the third quarter beat estimates.

The share rise came after yesterday that ranged from activist investor Elliott management proposals for the restructuring of the company. Samsung wants a $27-billion special dividend to shareholders.

Samsung said it would carefully consider the proposals, including Division of the South Korean company in separate holding and operating companies, merging the former with construction firm Samsung C & T, and list on NASDAQ stock market.

Analysts say move would simplify the complex group structure by Samsung, at the same time the founding family Lee, with a share of 4.9 percent for Samsung Electronics, control keep. Lee Jae-Yong became de facto head of the company his father has been through a heart attack the year 2014 out of action. The son is an inheritance tax bill runs into the billions of dollars.

Elliott management – owner 0.62 percent of stake in Samsung Electronics – also called for reserves, a one-time dividend payment in the amount of $27 billion of its $70 billion cash to be removed. The shares of the company rose 5 percent as other investors their support for the proposals indicated.

Still good news for the South Korean company today installed. Samsung expected despite the note 7 debacle an operating profit of about $7 billion on revenue of about $44 billion from Q3 2016 – an increase of just over $3.6 billion from the same period of the previous year.

Samsung has not the full 7 recall on costs of the annotation, but analysts say it could have slashed about $896 million from their income. It was the company other companies such as semiconductor and OLED displays, according to the figures better than predicted.

“Without the unique callback cost Samsung originally expected was better and this year better”, Chung Chang won analyst at Nomura Holdings Inc. in Seoul, said Bloomberg. “When his handset not in more trouble, here and there the strong performance of the components company, Samsung shares continued its upward March.”