[Courtesy of Cheil Worldwide]
Samsung Electronics announced its decision Thursday to increase its stake in Cheil Worldwide Inc, an advertising arm of South Korea's iconic giant Samsung Group, through the acquisition of shares held by its sister firm.
The purchase of stocks held by Samsung C&T Corp. for 267.5 billion won (234.6 million US dollars) will help the world's largest smartphone maker increase its stake in Cheil Worldwide from 12.60 percent to 25.24 percent.
Cheil Worldwide has been on the list of Samsung Group units which are subject to a group-wide restructuring program following the rupture of negotiations with French advertising firm Publicis Groupe SA. It's now clear if Samsung will spin off the advertising unit.
Samsung has struggled to cut costs as its flagship Samsung Electronics was hit by plunging profitability of its mobile due to competition with Chinese players rolling out price-competitive models.
Aju News Lim Chang-won = cwlim34@ajunews.com
reporter
Park Sae-jin
swatchsjp@ajunews.com
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