Samsung Everland to reorganize business portfolio
SEOUL, Nov. 4 (Yonhap) -- Samsung Everland Inc., the de facto holding company of South Korea's top conglomerate Samsung Group, said Monday that its board of directors has decided to sell its building management division to the group's security firm S-1 Corp. for 480 billion won (US$452 million).
Unlisted Samsung Everland also plans to spin off its catering service division into a food and beverage company temporarily named "Samsung Welstory," from Dec. 1, it said in a regulatory filing.
The sales and the spinoff came from Samsung Everland's efforts to focus its business portfolio on design and contents businesses by separating divisions unrelated to its projects to reorganize its business portfolio, the company said.
Samsung Everland said that it sold and separated its two business divisions in order to secure more money to invest into new growth engines such as its fashion and bio businesses.
In September, the company decided to acquire the fashion division from the group's textile and fashion unit Cheil Industries Inc. by Dec. 1 in a bid to foster its material and chemical business.
Samsung Everland's building management business will be transferred to S-1 by Jan. 10, 2014.
With the sales and spinoff, Samsung Everland's business portfolio is composed of only three divisions: construction, leisure and fashion.
Lee Jay-yong, the only son of Samsung Chairman Lee Kun-hee, holds a 25.1 percent stake in Samsung Everland, the operator of the country's largest amusement park Everland. He became the biggest shareholder as of June 2013.