How to distribute the 110 trillion won AI windfall? A Seoul hedge fund "pressures" Samsung: Immediately buy back and cancel preferred shares.

Title context: How to distribute the 110 trillion won AI windfall? A Seoul hedge fund "pressures" Samsung: Immediately buy back and cancel preferred shares. Text: A South Korean hedge fund is urging Samsung Electronics to buy back and cancel preferred shares, becoming one of the first shareholders to directly pressure the company into taking this step in hopes of boosting its valuation. According to the fund's statement, Life Asset Management this week sent a letter to Samsung's board and management, calling on the South Korean tech giant to repurchase and cancel these shares until the price gap with common stock is eliminated. Life Asset, which did not disclose the size of its Samsung stake, asked the board to consider the plan at its October meeting and complete the cancellation by December. Life Asset's appeal suggests that more shareholders will pressure Samsung in the future. This comes after the chipmaker recently announced a plan to return up to 110 trillion won ($81.7 billion) to investors this year to share the AI windfall. Although Samsung has not yet fully disclosed the details, people watching the company have consistently emphasized that preferred shares should be bought back because they trade at a significant discount to common stock. The price gap between preferred and common shares is widening The Seoul-based hedge fund said that after deducting special dividends and regular dividends, up to 73 trillion won of the shareholder return plan should be allocated to share buybacks. Its preferred shares are currently at a discount of more than 25% to common stock. Market observers expect Samsung to allocate a large portion of the buyback to preferred shares, as this approach is more cost-efficient. According to Life Asset, Samsung can currently cancel 1.36 preferred shares for the same amount of money needed to cancel one common share. According to the fund's website, it manages $4 billion in assets. Avoiding common stock in the buyback would also help Samsung avoid a rule that could force its affiliates to reduce their holdings. South Korean law prohibits financial affiliates from holding more than 10% of voting common stock.