Korean battery-maker plans to use funding for US joint venture with GM, Hungarian plant upscale and solid-state battery development
Samsung SDI’s paid-in capital increase attempt is expected to garner approximately 1.65 trillion won ($1.21 billion) as the subscription rate for the newly issued shares exceeded 100 percent.
According to the Financial Supervisory Service’s regulatory filing on Friday, the subscription rate of Samsung SDI’s rights offering for the employee stock ownership association and existing shareholders reached 101.96 percent to surpass the to-be-issued shares. The new stocks will be listed on June 13 at the price of 140,000 won per share.
Samsung Electronics, which holds a 19.58 percent stake in Samsung SDI as its largest shareholder, earlier announced that it would go for 120 percent of the maximum subscription for the rights offering.
Industry watchers attributed Samsung SDI’s successful capital increase to the company’s undervalued stock price and hopeful outlook for mid- to long-term businesses, such as batteries for electric vehicles and energy storage systems, as well as better earnings performance.
Samsung SDI plans to use the additional funding for investments in the US joint venture with General Motors, expansion of the Hungarian manufacturing plant’s capacity, and investments in facilities for solid-state batteries, as the company looks to strengthen competitiveness across all business areas and bolster the foundation for future growth.
Samsung SDI’s stock price was 160,200 won per share at Friday’s closing, down 1.78 percent from the previous day.
hwkan@heraldcorp.com
