Samsung Card denies report on Samsung Life's plans for stake sale

(ATTN: ADDS details in para 3, 5-7)
SEOUL, Jan. 4 (Yonhap) -- Samsung Card Co. denied on Monday a media report
stating that Samsung Life Insurance Co. is considering selling its stake in the
card company to retail giant Shinsegae Co.
A local economic daily reported that Samsung Life Insurance, the credit card
firm's No. 2 stakeholder, is planning to sell its stake in a bid to cut the
cross-shareholding structure of its parent group after listing its shares on the
main bourse in the first half this year.
The report by Korea Economic Daily also noted, "Samsung Group is seeking
candidate companies that can take over Samsung Card, and Shinsegae is the first
to contact."
"The report is groundless," the credit card company said in a regulatory filing.
Samsung Life Insurance is the second-largest shareholder of Samsung Card with a
26.4 percent interest following Samsung Electronics, which holds 35.2 percent.
Samsung Card, in turn, holds a 25.6 percent stake in Samsung Everland Inc., which
operates as a de facto holding company for Samsung Group. Samsung Everland owns
the biggest stake in Samsung Life, with 13.3 percent.
Samsung said in April 2008 that the group will come up with a plan to reform its
governing structure, including a reduction in cross-share ownership amid rising
public criticism.
Samsung has been criticized for its control of affiliates through such a
cross-ownership structure.
sooyeon@yna.co.kr
pbr@yna.co.kr
(END)