Samsung Unloads Tech Shares as It Braces for Galaxy Note 7 Recall Costs

As it grapples with a massive global smartphone recall that is estimated to cost more than $1 billion, Samsung Electronics Co. is moving swiftly to sell stakes in other technology companies to raise cash. The world’s biggest smartphone maker said Sept 18 it has sold shares in computer-drive maker Seagate Technology PLC, chip maker Rambus Inc., Dutch semiconductor-equipment maker ASML Holding NV and Japanese electronics maker Sharp Corp.

The divestments come as Samsung said it would recall 2.5 million Galaxy Note 7 smartphones globally after reports of the phones catching fire. While Samsung didn’t disclose how much it would raise from the share sales, any cash generated from the sale would help it pay down ballooning costs from the smartphone industry’s biggest recall to date. Under the guiding hand of heir apparent Lee Jae-yong, Samsung has been moving to shed noncore assets to raise cash as the company seeks to expand into other areas including biopharmaceuticals.