South Korean watchdog to force Samsung unit to sell $483 million stake

South Korean watchdog to force Samsung unit to sell $483 million stake
Samsung logo as seen during Galaxy Note 8 consumer launch event in Jakarta, Indonesia September 29, 2017. REUTERS/Beawiharta
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SEOUL (Reuters) – Samsung Group affiliate Samsung SDI will be forced to sell Samsung C&T shares worth about 522 billion won ($483 million) after South Korea’s antitrust agency said on Thursday it would tighten rules on cross-shareholdings.

In order to comply with the stricter guidelines, Samsung SDI must sell about four million shares in Samsung C&T, a Korea Fair Trade Commission (KFTC) official said.

The rules apply to cross-shareholding ties created by the merger of two companies in a conglomerate, such as the 2015 merger of two Samsung affiliates which created Samsung C&T.

Shares in Samsung SDI fell 3.8 percent on Thursday before the announcement, while shares in Samsung C&T fell 1.2 percent.

Samsung would have six months to comply with the new guidelines once they were finalised, the commission said.

A Samsung spokesman declined to comment.

(Reporting by Joyce Lee; Editing by Stephen Coates)

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