he South Korean battery maker, Samsung SDI, is now cutting by 14% the price of new shares it will also sell to raise 2 trillion won, meaning $1.4 billion, as a
response to the global markets’ selloff that was triggered by U.S. tariffs, which hit corporate deals across Asia.
Samsung SDI was also indicated on Wednesday as it plans to sell its new shares at 146,200 Korean won, meaning $98.41 each, a lowering from 169,200 won that were announced last month. The final price is to be set on May 19.
A growing number of deals are being impacted by the volatility sweeping global markets in the aftermath of the US President Donald Trump’s tariff package. Even more so, the “reciprocal” tariffs that are present in dozens of countries that took effect on Wednesday, including 104% duties on Chinese goods. On Tuesday, China also said that it would “fight to the end” against the proposed tariffs.
Even more so, the tariffs have sparked turmoil in international equities and bond markets as investors fear that a global economic downturn is imminent. The equity market from Asia was also down again on Wednesday, with MSCI’s broadest index of Asia-Pacific shares outside Japan dropping 2%.
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It is also worth noting that the 10-year U.S. Treasury yield is the globe’s benchmark safe-haven anchor, which was up to 20 basis points and rising in Asia, signifying investors were selling even theri safest assets. Even more so, the South Korean won tumbled to a more than 16-year low on Wednesday.
Samsung SDI said in March that it would issue 11,821,000 new shares in order to raise capital to fund a U.S. joint venture with General Motors, as they can also expand factory capacity in Hungary, as reported by Reuters.
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