31st Jul 2018 08:46
Transaction with Affiliate Company
Samsung Electronics Co., Ltd. (KS005930, KS005935, SMSN, SMSD) ("SEC") on July 31, 2018 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 | October 27, 2018-April 30, 2020 |
Transaction Amount | KRW 10,892 million/year |
Purpose of Transaction | Lease of office space |
Terms and Conditions | 1. Deposit: KRW 8,942 million 2. Annual rental payment: KRW 10,731 million - The transaction amount, deposit, and annual rental payment (monthly rental payment *12) stated above apply to first year of the lease period and will increase reflecting the inflation rate in the second year. - The transaction amount above is the sum of the annual rental payment and adjusted annual rental payment, which is equal to 1.8% (the interest rate in accordance with relevant regulations) of the deposit amount. |
Other Information:
ž Number of Independent Directors present at the BOD meeting: 6 (100%)
ž Attendance of Audit Committee: Y
Provision of Collateral Security
- SEC to use the building and land in the transaction above as collateral to secure the deposit
□ Major Transaction Terms
Owner of Property | Samsung Electronics Co., Ltd. |
Related party | Samsung Securities Co., Ltd. |
Collateral Security | Land and building |
Security Period | October 27, 2018- (expires on the repayment of deposit) |
Guaranteed Amount | KRW 8,942 million |
Maximum Guaranteed Amount | KRW 10,731 million |
Terms and Conditions | - The date of security period may change. - The maximum guaranteed amount is equal to 120% of the guaranteed amount. |
Other Information:
ž Number of Independent Directors present at the BOD meeting: 6 (100%)
ž 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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