29th Apr 2020 07:40
Transaction with Affiliate Company
Samsung Electronics Co., Ltd. (KS005930, KS005935, SMSN, SMSD) ("SEC") on April 29, 2020 announced that its Board of Directors has authorized the following related-party transaction with an affiliated company.
Real Estate Lease Agreement
□ Major Transaction Terms
Owner of Property | Samsung Electronics Co., Ltd. |
Lessee | Samsung Securities Co., Ltd. |
Lease Period | May 1, 2020-April 30, 2022 |
Transaction Amount | KRW 11,931 million/year |
Purpose of Transaction | Lease of office space |
Terms and Conditions | - Deposit: KRW 9,795 million - Annual rental payment: KRW 11,755 million - Transaction Amount is the sum of annual rental payment and deposit*interest rate of 1.8% (as per related act) |
Other Information:
Number of Independent Directors present at the BOD meeting: 6 (100%) Attendance of Audit Committee: Y
Provision of Collateral Security
SEC to use a building and land as collateral to secure the deposit in the above transaction
□ Major Transaction Terms
Owner of Property | Samsung Electronics Co., Ltd. |
Related party | Samsung Securities Co., Ltd. |
Collateral Security | Land and building |
Security Period | May 1, 2020- (expires on the repayment of deposit) |
Guaranteed Amount | KRW 9,795 million |
Maximum Guaranteed Amount | KRW 11,755 million |
Terms and Conditions | - Security period is subject to change. - The maximum guaranteed amount is 120% of the guaranteed amount. |
Other Information:
Number of Independent Directors present at the BOD meeting: 6 (100%) Attendance of Audit Committee: Y
※ This disclosure is in accordance with the Korean Fair Trade Act, which mandates that a company must disclose financial and real estate transactions in the event the value of such a transaction is greater or equal to KRW 5 billion and the counterparty is a financial affiliate of the party required to make the disclosure.
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