A few days after the release of Samsung Electronics Vice Chairman Lee Jae-yong from prison on parole, Samsung decided to end its 26-year auto venture with Renault.
In a regulatory filing to the Korea Exchange (KRX), Thursday, Samsung Card said the Samsung Group’s card issuance affiliate is on track to sell off stake it owns in Renault Samsung Motors.
“Samsung Card is in the process of selling the company-owned 19.9 percent stake in Renault Samsung Motor. But other specifics such as the type of stake sale and form of due process have yet to be decided,” it said in the filing. Samsung Card is the second-largest shareholder in Renault Samsung Motors, a joint venture with Renault Group.
Local investment banking industry sources said Samsung Card sent out invitations for a tender to private equity funds (PEFs) and various other financial investors at both home and aboard.
Samsung’s exit from the venture has widely been expected as Samsung Card decided not to renew its trademark contract with Renault, which expired last year. The expiration mandates Renault Samsung Motors remove “Samsung” from the venture’s name after a two-year grace period in September 2022. Renault Group had been paying between 40 billion won and 50 billion won to Samsung each year.
