[Edaily Reporter Kim Kyung-eun ] SAMSUNG SDI CO.,LTD.(006400)is trading higher in early trading as the settlement date for the partial sale of its stake in Samsung Display (SDC) approaches. This is interpreted as renewed optimism that the company will secure 4.45 trillion won in investment funds.
According to MP Doctor on the 27th, as of 9:17 a.m. today, SAMSUNG SDI CO.,LTD. is trading at 558,000 won, up 42,000 won (8.14%) from the previous trading day.
SAMSUNG SDI CO.,LTD. will sell 13,088,235 shares of Samsung Display it currently holds to Samsung Display in an over-the-counter transaction today. The sale price is 340,000 won per share, totaling 4.449999 trillion won. SAMSUNG SDI CO.,LTD. announced this share sale plan on the 21st. Once the transaction is finalized, SAMSUNG SDI CO.,LTD.’s stake in Samsung Display will decrease from the current 15.2% to approximately 10.2%.
The market views this stake sale as a way for SAMSUNG SDI CO.,LTD. to secure a large amount of cash, thereby increasing its investment capacity to expand its ESS business in North America. In particular, since SAMSUNG SDI CO.,LTD. has decided to acquire GM’s entire stake in Synergy Cells—a battery manufacturing joint venture in Indiana, U.S., established with General Motors (GM)—and operate it independently, there is speculation that the proceeds from the sale will be used for related facility investments.
The fact that the value of the Samsung Display stake has been quantified is also viewed positively. Based on the sale price, Daol Investment & Securities estimated the value of SAMSUNG SDI CO.,LTD.’s stake in Samsung Display at approximately 13.5 trillion won—more than 20% higher than the previous book value of 11.2 trillion won.
Yoo Ji-woong, an analyst at Daol Investment & Securities, stated, “We believe that through this sale, SAMSUNG SDI CO.,LTD. has directly demonstrated its willingness to make new investments and the feasibility of demand for such investments,” adding, “It also signals expanding demand across the entire domestic battery value chain.” Reflecting this, Daol Investment & Securities raised its target price for SAMSUNG SDI CO.,LTD. from 770,000 won to 820,000 won.
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