] IT solutions developer Samsung SDS
said on Sept. 30 that it has decided to split off its US branch’s IT services unit as part of its business restructuring efforts.
The company said in a regulatory filing that it received approval from the board on Sept. 29 for the split-off plan, which Samsung SDS said is worth US$8.8 million.
With the anticipated separation, scheduled on Oct. 31, Samsung SDS America will be divided into two companies -- one for IT services and the other for logistic services.
“The latest decision is aimed at improving management efficiency and increasing the expertise of the US office,” said Samsung SDS in the filing.
The latest announcement came after Samsung SDS said in July that it would carry out business restructuring to split off its logistic solutions business and the rest, which many assumed include the IT solutions business.
“The separation of the IT services unit from the US branch had long been considered before Samsung SDS’s recent initiative to streamline its business structure,” said a Samsung SDS spokesperson, adding that the company would first try to complete the split-off scheme for its global offices before the head office in Seoul.
“The details of the split-off scheme for the Seoul headquarters have not been decided yet,” the spokesperson said.
Samsung SDS shares jumped 9 percent on Sept. 29 on expectations of the ongoing division.
The shares, however, opened down more than 3.81 percent to 151,000 won (US$136.96) in early morning trading on Sept. 30.
Some market watchers forecast that the restructuring plan is intended to merge the IT services arm of Samsung SDS and tech giant Samsung Electronics
By Kim Young-won(firstname.lastname@example.org