March 24, 2022
By Sumeet Chatterjee and Joyce Lee
SEOUL (Reuters) -Shares in Samsung Electronics Co Ltd worth about $1.1 billion were sold by Kookmin Bank on Thursday, according to a term sheet seen by Reuters.
About 19.9 million shares were on sale at 68,800 won per share, the term sheet showed.
Samsung Electronics’ share price was down 1% at 69,800 won in early trade, versus a 0.9% fall in the wider market.
Samsung Electronics did not have a comment on the sale.
The shares on sale matched the amount that Hong Ra-hee, mother of Samsung Electronics Vice Chairman Jay Y. Lee and wife of deceased Samsung patriarch Lee Kun-hee, agreed to keep in trust with Kookmin Bank in October, according to a Samsung Electronics filing.
The trust agreement period was due to end by April 25, the filing showed.
Since patriarch Lee died in 2020, Samsung’s owner-family decided to use shares in affiliated companies to pay part of more than $10 billion in inheritance tax, people with direct knowledge of the matter previously told Reuters.
The tax code allows payment in instalments, with one-sixth of the total to be paid first, and the remainder over five years with an annual interest rate. Even in instalments, analysts expect over 2 trillion won ($1.64 billion) to be due annually.
Analysts said they expected Thursday’s share sale.
Kookmin, Goldman Sachs and JPMorgan were bookrunners for the sale.
($1 = 1,220.1500 won)
(Reporting by Sumeet Chatterjee and Joyce Lee; Editing by Jacqueline Wong and Christopher Cushing)