A USD1.4 billion windfall was reaped by Samsung Electronics Co two years after it accepted stock in Seagate Technology Plc. The said stock was partial payment for the sale of its computer hard disk drive business.
Samsung had divested the unit back in April 2011 in exchange for USD687.5 million in cash and the same value in stock. Since that time, Seagate's share values have more than doubled and now, the Korean electronics conglomerate had agreed to to sell off part of its shareholdings to the Dublin-based firm.
Since the sale of the hard disk drive business, Samsung had catapulted itself into becoming the largest smartphone manufacturer in the world. Seagate on the other hand, had surged in its own business area after it had reacquired investment grade status from Fitch Ratings and Standard and Poor's.
Under the agreement, Samsung would be reselling to Seagate 32.7 million shares of stock for a total price of USD1.51 billion. Samsung would retain 12.5 million shares, which now holds a value of USD561 million.
Samsung spokesman Nam Ki Yung declined to make any comment on the potential profit to be reaped by his company.
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