Samsung Electronics is reportedly considering to split business into two entities

Samsung also said work was underway with outside advisers to review optimal corporate structure.

The move has always been expected from the company, as the next step taken by the Lee family heirs, the founders of the company.

Samsung is now deciding whether or it not it should follow the advice of the United States hedge fund management firm Elliott Management that has proposed that the company split its business in two, with one holding company for ownership and another for operations.

Samsung Electronics Co managers and Elliott Management Corp. were discussing with investors in the USA and Korea to look into opinions on the activist investor’s suggestions to overhaul the company.

Samsung Electronics is considering a break-up of the company into two parts, according to a report Monday.

Elliott also proposed three independent directors on Samsung’s board. “Its board of directors has no truly independent members with experience in global operations, technology and capital allocation”.

The South Korean firm is reported to be holding talks with other investors in the USA and South Korea to gauge opinion on Elliott’s proposals.

Such a move would allow a smooth takeover by the company by Lee Jae-yong from his father Lee Kun-hee, who suffered a heart attack in 2014 but remains leader of the Samsung Group.

Whether Samsung Electronics really wants to or not, investor appetite for the split is certainly growing.

The firm also said it needed to maintain a net cash position of between 65 trillion won and 70 trillion won, suggesting it is not likely to pay the 30 trillion won special dividend sought by Elliott.

Following pressure from disgruntled shareholders, Samsung is set to announce changes on Tuesday that should boost the amount of profit returned to investors. This might be the bitter truth but Samsung’s smartphone business has been struck with a major setback due to the whole Galaxy Note 7 exploding debacle. On top of that, the company recalled a whopping 2.8 million washing machines, and Samsung’s offices in Seoul has been raided twice because of a political scandal in South Korea.