SEOUL: Jay Y. Lee, the billionaire heir to South Korea’s Samsung Group, should find some comfort that its crown jewel Samsung Electronics has reported record profit every quarter since he was jailed in February, making him even richer.
Detained over charges that he bribed former president Park Geun-hye, Lee has since missed the launch of two new flagship phones and three record-breaking quarterly earnings, including July-September earnings guidance on Friday.
He will also be briefed that his top lieutenant and chief executive of Samsung Electronics, Kwon Oh-hyun, has decided to step down to make way for a new leader.
Kwon, who was expected to take a bigger role following Lee’s arrest and the departures of other key executives in the wake of the bribery scandal, made the surprise announcement on Friday when Samsung also forecast record quarterly profit on the back of the memory chip business.
While Lee is unable to do much to minimize a leadership vacuum at one of the world’s biggest technology firms, the 49-year-old Samsung scion will get some solace that Samsung is chugging along without him.
He may also like to know his wealth, in terms of his stake in Samsung Electronics, has increased by at least 45 percent since his arrest.
His Samsung Electronics stake, albeit below one percent, is now worth 2.3 trillion won ($2 billion). Lee also received at least 11.8 billion won in dividends from Samsung Electronics during his detention, and 837 million won in pay during the first half of 2017. He owns stakes in other Samsung affiliates.
He will miss another record earnings announcement expected in the fourth quarter as he is expected to stay in prison at least until February, when the appellate court hearing his case is likely to try to rule on the bribery suit.
While some investors worry about a prolonged leadership vacuum, and Kwon warned that Samsung was struggling to find new growth engines, others seem more sanguine.
“I think Samsung has a firm system to run the company even in the absence of its head, as we saw from the case of both Lee Kun-hee and (his son) Jay Y. Lee,” said a fund manager who owns Samsung shares, referring to the Samsung Group patriarch who was incapacitated in 2014 following a heart attack.
“Someone will replace him somehow. It’s just like Apple doing fine even after Steve Jobs,” he said, declining to be named as he was not authorized to talk to the media.
Behind bars, Samsung heir Lee sees his wealth top $2 billion
Behind bars, Samsung heir Lee sees his wealth top $2 billion
Closing Bell: Saudi main index rises to close at 11,251
RIYADH: Saudi Arabia’s Tadawul All Share Index rose on Thursday, gaining 84.27 points, or 0.75 percent, to close at 11,251.81.
The total trading turnover of the benchmark index was SR5.38 billion ($1.43 billion), as 188 of the stocks advanced and 67 retreated.
Similarly, the Kingdom’s parallel market Nomu gained 157.22 points, or 0.67 percent, to close at 23,643.74. This comes as 44 of the stocks advanced while 32 retreated.
The MSCI Tadawul Index gained 10.88 points, or 0.72 percent, to close at 1,517.43.
The best-performing stock of the day was Saudi Kayan Petrochemical Co., whose share price surged 9.96 percent to SR5.30.
Other top performers included Ataa Educational Co., whose share price rose 9.94 percent to SR57.50, as well as Rabigh Refining and Petrochemical Co., whose share price surged 5.74 percent to SR7.55.
Saudia Dairy and Foodstuff Co. recorded the most significant drop, falling 5.93 percent to SR220.50.
Abdullah Saad Mohammed Abo Moati for Bookstores Co. also saw its stock prices fall 2.77 percent to SR43.56.
Zahrat Al Waha for Trading Co. also saw its stock prices decline 2.30 percent to SR2.55.
On the announcement front, Multi Business Group Co. reported its annual financial results for the year ended Dec. 31. According to a Tadawul statement, the firm recorded a net profit of SR352,172 during the year, down 98 percent from the previous year.
The company attributed the decline primarily to a 2 percent drop in building contracting revenues and a 73 percent decrease in gross profit.
Multi Business Group Co. ended the session at SR9.90, down 1 percent.
Hamad Mohammed Bin Saedan Real Estate Co. announced the signing of a memorandum of understanding with Saudi Awwal Bank to enhance collaboration in financing solutions, advance real estate development projects, and expand access to customer financing programs.
Hamad Mohammed Bin Saedan Real Estate Co. ended the session at SR6.67, up 1.21 percent.
