Samsung SDS denies IPO plan for 2011

By Kim Yoo-chul

Samsung SDS, an affiliate for information technology services, is not planning an initial public offering (IPO) this year but rather opting for a big acquisition deal.

Its CEO is also placing a priority on growth through exports.

``Samsung SDS plans to increase the sales portion from overseas to 30 percent this year from last year’s 20 percent,’’ said CEO Alfred S. Koh at a news conference in Seoul, Tuesday.

SDS aims to reap 5 trillion won in sales this year ― an increase of more than 20 percent from 4 trillion won last year.

Koh, who recently replaced Kim In as the firm’s CEO, said this year will be ``more than crucial’’ to lay solid ground for an increased international presence. He added that there are deals in their last stages of negotiation.

``In the last two years, Samsung SDS failed to yield any big results from overseas but we’ve gained some insight in return,’’ the CEO said, adding it is keenly interested in e-government and other infrastructure-related projects in emerging and developed countries.

Samsung SDS provides technology-related services and products such as consulting, systems integration, software development, packaged software, outsourcing and technical training. It’s been diversifying its business fields to bigger infrastructure-related projects.

The chief executive said that he doesn’t have any plans to list SDS on the stock exchange, citing its stable cash reserves and financial soundness.

``The key reason to seek an IPO is because of the need to raise cash, but Samsung SDS has no such plans,’’ he said.

When asked about buying Korea Express in a move towards direct management in logistics, the chief executive said, ``I heard the rumor but that’s completely false and groundless. SDS has no such plans.’’

Koh said the company will increase its budget for research and development (R&D) to 3 percent out of the total sales from below 2 percent last year.