Samsung Electronics held on October 27 an Extraordinary General Meeting of Shareholders, attended by approximately 400 people, including individual shareholders, institutional investors, Vice Chairman & CEO Oh-Hyun Kwon, President & CEO Boo-Keun Yoon and President & CEO J.K. Shin.
Samsung Electronics’ Board of Directors had called the meeting on September 12 to seek shareholder approvals for two agenda items, the spin-off of the Company’s Printing Business Unit and the nomination of Jay Y. Lee as a member of the Board.
Oh-Hyun Kwon, the Chairman of the Board of Directors, said in his opening remarks: “This year, Samsung Electronics is entering a new stage of growth thanks to the unparalleled competitiveness of the component products, including V-NAND and OLED, and as the Company works toward reinvigorating its mobile business.”
Mr. Kwon noted that the technology sector is rapidly changing and Samsung Electronics is prioritizing strategic decision making to make bold and timely investments as well as to assure mid- to long-term growth momentum.
Divestment of the Printing Business Unit
Upon shareholders’ approval, Samsung Electronics will spin off the Printing Business Unit into a separate company as of November 1 and sell 100 percent stake of the newly created company and overseas assets related to the business to HP Inc.
“The decision was made in the context of Samsung Electronics’ commitment to an on-going reorganization of business units in order to further concentrate on core competencies and to maximize competitiveness,” said Mr. Kwon. “Going forward, the Company will continue along this path of focusing on what it does best.”
Appointment of Jay Y. Lee to the Board of Directors
The Board of Directors has proposed the appointment of Jay Y. Lee, Vice Chairman of Samsung Electronics, to the Board, subject to shareholders’ confirmation.
“In order to respond to the rapidly changing business conditions and to achieve sustainable levels of growth, the Board has agreed that now is the right time to nominate Mr. Lee as a member,” Mr. Kwon said.
Mr. Lee has extensive experience as a business leader over many years and has made important contributions to the success of Samsung Electronics. The Company has seen improvements in the performance of its key business areas in recent years.
“Mr. Lee’s election to the Board will allow him to more actively participate and take formal responsibility in the Company’s important decision making, contributing to creating long-term, sustainable value for all of our stakeholders,” Mr. Kwon said.
Following Mr. Lee’s election, the Board will provide the leadership to take Samsung Electronics to the next level of success, helping the Company focus on timely investments, business re-organization to enhance core capabilities and creating a more open corporate culture.
Regarding the Galaxy Note7
Samsung Electronics recently made a decision to discontinue production and sale of the Galaxy Note7 to ensure safety of our customers. Going forward, the Company will make significant changes in the quality assurance processes in its commitment to providing safe and reliable products and regaining customers’ confidence.
“Throughout its 47-year history, Samsung Electronics has faced and overcome numerous challenges, creating opportunities through innovation,” said Mr. Kwon. “Samsung Electronics is strongly committed to increasing value for shareholders and enhancing the Company’s global leadership, learning from and adapting to this challenging business environment.”