Investment sentiment is drastically turning around as opinions diverge over the direction of corporate governance realignment by Samsung Group, following the announcement of Samsung Everland’s planned listing

June 16, 2014 Leave a comment

Stock market swayed by speculations on Samsung’s conversion into holding co structure

2014.06.10 15:05:15

Investment sentiment is drastically turning around as opinions diverge over the direction of corporate governance realignment by Samsung Group, following the announcement of Samsung Everland’s planned listing.
Brokerages shifted their focus from Samsung Group’s possible conversion into a holding company structure to strengthened control of the Group through spinoffs and mergers of major affiliates or handover of shareholdings to the third generation of the owner family after Everland’s listing. 
With KOSPI staying at the 2,000 level, shares of Samsung affiliates are leading the market and witnessing sharp volatility depending on changes in observations regarding conversion into a holding company structure.
Samsung Electronics shares extended downhill trend for two consecutive trading days. Excluding a slight rebound Tuesday, major affiliates of Samsung Group remain bearish.
Samsung Electronics shares hit its yearly high of 1.47 million won ($1,445) on June 10. It jumped 0.99 percent as of 11:50 a.m. Tuesday after sliding 4.1 percent for two trading days.
Samsung Everland’s conversion into a holding company could face hindrances and even if becomes a reality, a prevailing view is that the conversion will not come at a rapid pace that could justify anticipations on immediate share price gains, making investors take pause for breath.

Filed under Macro Trends

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Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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