Overview
- Samsung SDS shares, which jumped about 20% in Seoul trading Wednesday, rallied after the company unveiled a partnership with KKR tied to a large convertible bond sale.
- A definitive agreement Tuesday set KKR’s purchase of KRW 1.22 trillion in newly issued convertible bonds, funded mainly by its Asia Fund IV, with closing targeted for the second quarter.
- KKR will serve as an active adviser for six years on mergers and acquisitions, capital allocation, and Samsung SDS’s expansion as a full‑stack AI solutions provider.
- The bonds carry strict terms with a fixed 180,000‑won conversion price at an 18% premium to Tuesday’s close, no refixing clause that would cut the price if shares fell, April 2032 maturity, a six‑year lock‑up, and no early exit, implying roughly an 8% stake on conversion.
- Samsung SDS will pair the new funds with 6.4 trillion won in cash to build AI infrastructure and pursue overseas deals, including planned data centers in Haenam by 2028 and Gumi by 2029, in a market drawing more foreign capital to Korean tech.