HP To Purchase Samsung's Share in JV

Staff -- Semiconductor International, 8/1/1998

Hewlett-Packard Co. (HP, Palo Alto, Calif.) and Samsung Electronics Co. (SEC, Seoul, Korea) signed an agreement for HP to purchase SEC's 45% share in the companies' 13-year-old joint venture, Hewlett-Packard Korea. HP will pay $36 million, which Samsung will use to improve its financial structure and cash flow.

Recently, the Samsung Group secured $2.5 billion in foreign funds as part of its restructuring program. The company hopes to attract $5 billion in foreign funds by disposing of some subsidiaries or capital tie-ups with foreign business partners this year in an effort to improve its financial structure.

HP agreed to buy SEC's share of HP Korea to help its efforts in attracting foreign funds. HP and Samsung have worked together since 1977 to jointly develop products, expand their purchasing activities and manage the service and support of HP products. They formed their joint-venture company, originally called Samsung Hewlett-Packard, in 1984.