The mother and two sisters of Samsung’s chairman, Jay Y. Lee, are planning to sell about $1.22 billion worth of their shares in the South Korean tech giant. The massive stock sale is to cover tax payments and loan repayments, according to a company filing.
The family plans to sell 17.7 million shares, which is about a 0.3% stake in the company. The move comes as Samsung’s stock has been on a tear, soaring more than 84% so far this year. The timing of the sale, however, has some analysts worried that it could put a damper on the stock’s incredible run.
“One disappointing aspect is that the owner family is selling shares at a time like this, which could dampen sentiment among retail investors,” said Park Ju-gun, a corporate analyst. He pointed out that Samsung is practically a “national stock” in South Korea, owned by about 5 million small investors who have been eagerly watching the stock price climb.
The massive tax bill is related to the inheritance of the family’s vast fortune. By selling the shares now, while the stock price is near its all-time high, the family can easily cover the costs. The sale is a stark reminder of the immense wealth and power of Samsung’s founding family, and the huge financial obligations that come with it.
