Samsung pursuing ‘meaningful’ acquisition within 3 years

Samsung Electronics said on Thursday that is was actively considering acquisitions within the next three years.

Company CFO Yoonho Choi said Samsung was looking to actively use its cash reserve for strategic facilities investments and M&As (mergers and acquisitions).

Samsung’s last big acquisition was three years ago, when it bought autocomponet firm Harman in February 2017.

Choi said the South Korea tech behemoth has been looking for M&A candidates for the past three years and reviewed them seriously. The company was well prepared to proceed in M&A, the CFO said. He didn’t mention any names of the potential candidates.

It was difficult to say when the acquisitions will happen due to global uncertainties but Samsung plans to do so within with period of its latest shareholders return program, the executive said.

Samsung announced its latest 3-year shareholders return program. The company will continue to return 50% of the free cash flow (FCF) generated in the 2021 to 2023 period, the firm said. The regular dividend will increase to an annual total of 9.8 trillion won, an increase from the previous program.

Samsung’s cash reserve was 104 trillion won as of 2020. Even if the company return 50% if the FCF as dividends, without a large M&A, free cash will continue to pile up.

The CFO also said the company has yet to finalize any plan for additional investments into its Austin chip factory.