Transaction with Affiliate Company
Source: RNS
Transaction with Affiliate Company
Samsung Electronics Co., Ltd. (KS005930, KS005935, SMSN, SMSD) ("SEC" or the
"Company"), on July 28, 2022, announced that its Board of Directors has authorized following
transactions with following affiliated companies.
1. Investment in the New Technology Investment Association (SVIC 57)
- Investment in the New Technology Investment Association (SVIC 57), established by Samsung Venture Investment Corporation (SVIC).
□ Major transaction terms
|
Transaction date |
August 2022 |
|
Transaction value |
KRW 148,500 million (to be made in cash) |
|
Purpose of transaction |
Reinforcement of competitiveness in finished product businesses and identification of industry-leading technologies |
|
Terms and conditions |
* With the investment, SEC joins the New Technology Investment Association (SVIC 57). * The total amount of the Investment Association (KRW 150 billion) is comprised of KRW 148.5 billion from SEC and KRW 1.5 billion from SVIC. * The funds will be paid on an as-needed basis via investments over the 7-year term of SVIC 57. Both SEC's join date and duration of SVIC 57 are subject to change. |
Other information:
- Number of Independent Directors present at the Board of Directors meeting: 4 (100% attendance)
- Attendance of Audit Committee: Y
2. Purchase of Insurance Policy from Samsung Fire & Marine Insurance
□ Major transaction terms
|
Insurer |
Samsung Fire & Marine Insurance Co., Ltd. |
|
Application date |
September 1, 2022 |
|
Type of insurance |
Package insurance |
|
Insurance premium |
KRW 104.34 billion |
|
Insurance benefit |
- |
|
Insurance coverage period |
September 1, 2022-August 31, 2023 (12 months) |
|
Total insurance premium |
KRW 104.34 billion |
|
Insurance coverage |
Buildings, machinery, etc., in Samsung Electronics' various business and factory sites located in Korea |
|
Method of insurance payment |
Lump sum |
|
Interest rate (%) |
- |
|
Purpose of transaction |
To comprehensively insure against the risks and potential losses from property damage and injury to persons, as well as the suspension of operational activities, caused by fires, explosions, natural disasters, etc., at Samsung Electronics' various business and factory sites in Korea. |
Other Information:
- Number of Independent Directors present at the Board of Directors meeting: 4 (100% attendance)
- Attendance of Audit Committee: Y
□ Major transaction terms
|
Insurer |
Samsung Fire & Marine Insurance Co., Ltd. |
|
Application date |
August 2022 |
|
Type of insurance |
Mobile device insurance |
|
Insurance premium |
KRW 15,450 million |
|
Insurance benefit |
- |
|
Insurance coverage period |
1 year or 2 years from the application date |
|
Total insurance premium |
KRW 15,450 million |
|
Insurance coverage |
Smartphone liability (for models designated by SEC) |
|
Method of insurance payment |
Installments in accordance with the application date |
|
Interest rate (%) |
- |
|
Purpose of transaction |
To comprehensively insure against the risks and potential losses caused by unpredictable accidents associated with SEC's mobile devices |
Other information:
- The application date refers to the date on which the Company purchases a mobile device insurance
policy, and the Company plans to complete the purchase in August or September 2022.
- The total amount for insurance premium is an estimate, and such amount may change in relation to
the number of smartphones sold.
- Number of Independent Directors present at the Board of Directors Meeting: 4 (100% attendance)
- Attendance of Audit Committee: Y
3. Real estate lease agreement
□ Major transaction terms
|
Owner of property |
Samsung Electronics Co., Ltd. |
|
Lessee |
Samsung Display Co., Ltd. |
|
Lease period |
August 1, 2022-July 31, 2024 |
|
Transaction amount |
KRW 16,554 million/year |
|
Purpose of transaction |
Lease of land and building |
|
Terms and conditions |
1. Deposit: None 2. Annual rental payment: KRW 16,554 million/year - The annual rental payment is an average of appraisals calculated by multiple assessment institutions, considering asset price, expected profit, among other factors. - The annual rental payment for the second year (August 1, 2023 to July 31, 2024) is calculated to be KRW 12,623 million due to reduction in leased area. |
Other information:
- Number of Independent Directors present at the Board of Directors meeting: 4 (100% attendance)
- Attendance of Audit Committee: Y
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