Samsung Electronics Co. Ld Transactions with Affiliated Companies (8401R)

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RNS Number : 8401R

Samsung Electronics Co. Ld

31 October 2023

Transaction with Affiliate Company

Samsung Electronics Co., Ltd. (KS005930, KS005935, SMSN, SMSD) ("SEC"), on October 31, 2023, announced that its Board of Directors ("BOD") has authorized the following related-party transaction with an affiliated company.

1. Real estate lease agreement

 
 Owner of property        Samsung Electronics 
 Lessee                   Samsung Display Co., Ltd. 
                         --------------------------------------------- 
 Lease period             August 1, 2022-July 31, 2024 
                         --------------------------------------------- 
 Transaction amount       KRW 15,692 million/year 
                         --------------------------------------------- 
 Purpose of transaction   Lease of land or building 
                         --------------------------------------------- 
 Terms and conditions     - Deposit: None 
                           - Annual rental payment: KRW 15,692 million 
                           - The annual rental payment is an average 
                           of appraisals calculated by multiple 
                           assessment institutions, considering 
                           asset price, expected profit, and other 
                           factors. 
                           - The annual rental payment is calculated 
                           to be KRW 16,554 million for the first 
                           year (August 1, 2022 to July 31, 2023) 
                           ; and KRW 15,692 million for the second 
                           year (August 1, 2023 to July 31, 2024). 
                           - This is a correcting disclosure of 
                           the disclosure released on July 28, 2022, 
                           as the annual rental payment for the 
                           second year prescribed herein has been 
                           increased by 20% or more due to changes 
                           in the leased area. 
                         --------------------------------------------- 
 

2. Transaction with Samsung Display Co., Ltd

 
 Company   Samsung Display Co., Ltd 
 Date      November 1, 2023 
          -------------------------------------------- 
 Purpose   Grant of a non-exclusive license for 
            the process technology for the development 
            and manufacturing of OLEDoS owned by 
            SEC. 
          -------------------------------------------- 
 Amount    KRW 39.1 billion 
          -------------------------------------------- 
 Other     -The above date refers to the contract 
            date of a non-exclusive license agreement 
            with Samsung Display Co., Ltd. 
            -Regarding the end date of the agreement, 
            the term for the grant of a non-exclusive 
            license is perpetual. 
            -The above amount presents the total 
            amount for the grant of the license during 
            the agreement term and it is expected 
            to be paid within 30 days after signing 
            the agreement. 
          -------------------------------------------- 
 

3. Purchase of assets

 
 Transferee            Samsung Display Co., Ltd. 
 Scheduled purchase    November 1, 2023 
  date 
                      -------------------------------------------------- 
 Purchased assets      Buildings and mechanical equipment owned 
                        by Samsung Display within SEC's Cheonan 
                        Site 
                      -------------------------------------------------- 
 Expected purchase     KRW 10.5 billion 
  price 
                      -------------------------------------------------- 
 Purpose of transfer   Secure land for the construction of supplementary 
                        production facilities within the Cheonan 
                        Site 
                      -------------------------------------------------- 
 Others                - The scheduled purchased date above 
                        refers to the scheduled contract date, 
                        and the transfer of ownership is scheduled 
                        to take place within 30 days after signing 
                        the contract, subject to adjustments 
                        upon mutual agreement between parties. 
                      -------------------------------------------------- 
 

Other Information:

Number of Independent Directors present at the BOD meeting: 6 (100%)

Atte ndance of Audit Committee: Y

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October 31, 2023 03:21 ET (07:21 GMT)