TSM Taiwan Semiconductor Manufacturing Co Ltd

Samsung Electronics Co. is selling €606 million ($681 million) of shares in Dutch semiconductor company ASML Holding NV, according to a person familiar with the matter.

Samsung sold 6.3 million shares at €96.23 each, the person said. The sale would represent half of its 2.9% stake in the company. Samsung will retain a 1.45% stake after the sale.

The shares were sold through a private placement Wednesday to international investors outside the U.S., as well as to certain qualified institutional buyers in the U.S., the person said.

The offering is due to be completed on Sept 12. Investors are subject to a 90-day lockup. Goldman Sachs Group Inc. is handling the offering, the person added.

Samsung declined to comment on the reason for selling the ASML shares.

Based in Veldhoven in the Netherlands, ASML is the world's largest manufacturer by sales of lithography systems, which are used to print circuit patterns on silicon wafers.

Samsung is a major client and investor in the company, along with chip makers Intel Corp. and Taiwan Semiconductor Manufacturing Corp.

"As part of its regular business operations, Samsung Electronics has decided to sell a portion of its shares of Dutch semiconductor equipment company ASML," a company spokesman said, adding that the sale won't affect its existing partnership.

Samsung's investment in ASML dates back to 2012 when the Dutch chip-equipment supplier launched a co-investment to program aimed at reducing the cost and risks associated with next-generation chip technology development.

Under the program, Intel, TSMC and Samsung agreed to contribute a total of €1.38 billion over five years starting in 2013. Samsung acquired its stake in ASML as part of the program. Intel and TSMC took 15% and 5% stakes, respectively.

ASML spokesman Niclas Mica said Samsung's five-year contribution to the Dutch company's research-and-development program won't be affected by the company's decision to partially sell shares.

Write to Alec Macfarlane at Alec.Macfarlane@wsj.com

(END) Dow Jones Newswires

September 08, 2016 07:55 ET (11:55 GMT)

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