Samsung Electronics to Invest 334 Billion Won in Samsung SDI Rights Offering... Positive Signal for Capital Raising

Samsung Electronics will participate in Samsung SDI's rights offering worth 2 trillion won.

Seoul Seocho-gu Samsung Electronics Seocho Building. Photo by Yonhap News

According to industry sources on May 1, Samsung Electronics announced that it had approved an agenda regarding participation in Samsung SDI's rights offering allocated to existing shareholders at its regular board meeting held on April 30.

Samsung Electronics, the largest shareholder of Samsung SDI with a 19.58% stake, plans to invest a total of 334 billion won (based on 146,200 won per share) to acquire 2,284,590 shares of Samsung SDI. This figure includes both the allocation for existing shareholders and the 20% overallotment for additional subscriptions, representing the total expected number of shares to be acquired. The final number will be confirmed based on the allocation results for the additional subscriptions. The total investment amount may also change depending on the final issue price, which will be determined on June 19.

With Samsung Electronics actively participating in this rights offering, it is expected to have a positive impact on the upcoming subscription process for existing shareholders.

As a result, analysts say that prospects for Samsung SDI's capital raising through the rights offering have improved. Previously, on April 14, Samsung SDI decided to pursue a rights offering to strengthen its future competitiveness and accelerate mid- to long-term growth.

Samsung SDI stated that the funds raised through the rights offering will be used for investment in its joint venture with General Motors (GM) in the United States, expansion of production capacity at its plant in Hungary, and investment in all-solid-state battery line facilities.

The Samsung SDI rights offering will be conducted through an allocation to existing shareholders, followed by a public offering of forfeited shares. The employee stock ownership association subscription will take place on May 21, the existing shareholder subscription on May 21-22, and the public offering of forfeited shares on May 27-28. The new shares are scheduled to be listed on June 13.