Samsung confirms sale of print business to HP for $US1 billion
- 31 October, 2016 10:52
Samsung shareholders have agreed to sell the Korean company’s print business to HP Inc. for $US 1.05 billion following a drop in operating profits for the third quarter of 2016.
On October 27, the company called for an extraordinary general meeting of shareholders to vote on a proposed spin off of the tech giant’s printing business.
The meeting was called following the release of Samsung’s Q3 2016 earnings which confirmed revenue of 47.82 trillion Korean Won ($54.8 billion), with operating profits hitting 5.2 trillion Korean Won (around $6 billion), a year on year (YoY) fall of 34 per cent.
The figures were reflective of the revised earnings forecast the company issued on October 12, shortly after it announced it would be killing off the Samsung Galaxy Note7, which was plagued with issues not long after its launch.
Following the shareholder meeting and the subsequent spin off the print business, Samsung’s board of directors authorised the sale of the business operations of the company’s print division.
The company has now sold 100 per cent of the domestic Korean and international print business to HP Inc. The deal is expected to be completed within one year upon completion of the preceding conditions in the agreement between the two companies.
As reported by ARN, HP announced its intention to buy Samsung’s print business during the vendor’s Global Partners Conference early in October. HP described the event as a “landmark day” which represented the company’s largest print acquisition in its history.