Samsung Electronics refused to carry out restructuring, suggesting the creation of a holding company. The Board of Directors considered that such a structure would not be beneficial to shareholders, the Nikkei business publication reports..

On Thursday, April 27, Samsung said that the board decided not to transform the corporation into a holding structure that, in the opinion of the directors, would jeopardize the competitiveness of the company and would impede its operation.

"Samsung has come to the conclusion that the risks and complex conditions associated with the change in the corporate structure will not contribute to the increase in shareholder value and the maintenance of long-term business growth," says a statement by the South Korean giant.

In November 2016, the well-known hedge fund Elliott Management, which through controlled investment funds owns approximately 0.62% of Samsung's shares, called for the division of the corporation into a management company and holding to improve corporate governance and obtain tax benefits. Securities of the new holding company were offered to be placed on stock exchanges in New York and Seoul.

In addition, Elliott insisted on the need to pay Samsung shareholders a special dividend of $ 26 billion and include the company's board of directors of independent directors.

Investors believe that the company's shares have too complex management structure and are undervalued by the market by about 70%. It was reported that the division will allow members of the family of Lee, who founded the company, to strengthen control over the division engaged in the production of smartphones.

In February 2017, Samsung reported that the company is conducting "a thorough analysis of the optimal corporate structure, including exploring the possibility of creating a holding company".

In March, Vice Chairman of the Board of Directors of the company Kwon Oh-hyun said at the shareholders meeting that the company does not consider the division of shares, and any steps towards the holding "do not look easy". At the same time Oh Huyong said that Samsung is reviewing various options and is studying legal, tax and other aspects of the possible restructuring.

The publication MarketWatch notes that investors and regulators often criticize Samsung for its complex structure of cross-ownership of shares through 60 branches. According to critics, the non-transparent corporate structure allows the Lee family to maintain strong control over the company, despite owning a relatively small shareholding.

After refusing to create a holding, investors and the government of South Korea demanded from Samsung to explore other options for reforming the country's largest business empire.