Savills shares hit 52-week high on alliance with Samsung Life

Summary

  • Savills shares rallied more than 4 per cent in the late afternoon deals
  • Subsidiary Savills IM has reached an agreement with Samsung SRA
  • The stock of Savills rose over 4.39 per cent to a fresh 52-week high

Shares of Savills Plc (LON: SVS), the London-based real estate firm, rallied more than 4 per cent in the late afternoon deals on Thursday, 27 May, after its subsidiary Savills Investment Management formed a strategic investment alliance with Seoul-headquartered Samsung Life (KRX: 032830), the largest insurer in South Korea.

The stock of Savills jumped quickly in the morning session and reversed the gains within minutes in the first hour of trading. Savills shares started accumulating the rise slowly after the mid-morning deals.

According to the data available with the London Stock Exchange, shares of Savills rose as much as 4.39 per cent to a fresh 52-week high of GBX 1,237 in the terminal session from the previous close of GBX 1,183 apiece. Earlier in April this year, the stock of Savills hit a 52-week high at GBX 1,233 after the shares turned ex-dividend. The stock of Savills finally closed 4.4 per cent higher at 1,235.

Savills shares (27 May)

Image Source: REFINITIV

On a year-to-date (YTD) basis The stock of Savills has already amassed a gain of approximately 24 per cent in the present calendar year. Riding high on the back of vaccine optimism, the stock of Savills has gained a little more than 46 per cent.

The deal in brief:

  • Subsidiary Savills Investment Management has reached an agreement with Samsung SRA, the real estate management arm of Samsung Life.
  • According to the terms of arrangement, Samsung Life will be acquiring a minority stake in Savills IM Holdings Ltd.
  • The Korean insurance major will be committing a capital of $1 billion to Savills IM’s investment strategies over the course of the upcoming four years.

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  • Following the completion of the transaction, Samsung will command a 25 per cent stake in Savills IM for a cash consideration of £63.75 million.
  • The transaction, subject to approvals from various regulators, is likely to be completed in the fourth quarter of present year.
  • Samsung Life will be entitled to increase the stake in Savills IM by a further of up 10 per cent during the initial term of the arrangement.
  • With the strategic alliance between the two, Savills IM can capitalise the Korean clientele of Samsung SRA to its products.

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