Samsung Sells Its Stake In Tech Companies to Aid Note 7 Recall

It is clear that the path is far from straightforward for Samsung as it gears towards the global recall of its flagship Note 7 smartphone. In order to put aside money for the venture, which could cost it as much as $1 billion, Samsung has sold shares it used to own in four companies.

The companies include the 0.7-percent stake in Japanese electronics manufacturer Sharp Corporation, 0.7-percent of data storage company Seagate Technology PLC, 4.5-percent stake of semiconductor company Rambus Inc. and half of its stake in ASML, the semiconductor-equipment maker.

The total proceeds from the sale are valued at 1 trillion won, or $888.85 million.

The move is also another step towards its core competency areas from Samsung. We recently saw Samsung sell its $1.05 billion printer division to HP. However, the recall in all likelihood triggered the deal in the end, and will also help Samsung narrow its focus in the long-run.

The issue has already left the shareholders vary of the Korean giant, which lost almost $26 billion of its market value as shareholders continued to dump its shares.

Samsung still has a long way to go till it recalls all of the 2.5 million or so units it has already manufactured and shipped. Already, the project is mired by delays and concerns that the recall isn’t official, as Note 7s are found to be selling still in various outlets.