Samsung shareholders look to split up the company after disastrous 2016

Samsung shareholders look to split up the company after disastrous 2016

It’s been a rough year for Samsung. The fallout from the disastrous (and combustable) Samsung Galaxy Note 7 launch has burned a 6.1 trillion won hole in the company’s finances. This has lead some shareholders to question its leadership, with the aim of potentially splitting the company into two halves, Reuters reports.

New York-based hedge fund Elliot Management, which owns 0.6 percent of Samsung, wants the company to divide into two companies. One would be used as an operational company, while the other would be a holding vehicle for ownership purposes.

In addition, the fund also wants Samsung to pay out 30 trillion won ($26 billion) in a special dividend.

So far, Samsung’s keeping mum about its intentions, but according to an unidentified source speaking to The Seoul Economic Daily, the company is considering it. Samsung intends to hold a conference call at 9:30 A.M on Tuesday to discuss the plan.

The calls for a split come at a time when Samsung is increasingly vulnerable. Abroad, its highly profitable mobile division is struggling in the wake of the Galaxy Note 7 debacle, and at home the company is embroiled in a political scandal that has the potential to take down Park Geun-Hye, the President of South Korea.

Samsung to unveil shareholder return plans amid calls to split company on Reuters

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