Samsung Offer for AST Stake Extended to End of June

For the second time, Samsung Electronics Co. has extended its offer to buy 40% of AST Research Inc. while the two companies await approval from the South Korean government to complete the $378-million deal.

Samsung said Friday that it will extend its tender offer until June 30. It announced a similar postponement on April 21.

Under the terms of the offer, the Seoul-based electronics giant will pay existing shareholders $22 a share for 5.82 million shares--a total of $128 million. In addition, Samsung will invest $250 million in AST and pick up 12 million newly issued shares. Samsung also will provide AST with loan guarantees for up to $75 million.

Wall Street analysts said they don’t believe the postponement means the agreement is in doubt. AST’s stock fell 25 cents a share Friday to close at $18.25 a share in Nasdaq trading.

To make any overseas investment of $10 million or more, South Korean companies must obtain approval from the Overseas Investment Deliberation Committee, run by the nation’s central bank, Bank of Korea, and by the Ministry of Finance and Economy.