Samsung Cancels Treasury Stocks Worth Over $2 Billion
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Synopsis
Samsung Electronics has declared the cancellation of treasury stocks valued at 3 trillion won ($2.01 billion) as part of a buyback strategy designed to boost shareholder value. This action follows a decision made in November to repurchase shares worth 10 trillion won within a year.
Key Takeaways
- Samsung Electronics cancels 3 trillion won of treasury stocks.
- Retirement of 50.1 million common and 6.9 million preferred shares.
- Part of a larger 10 trillion won share repurchase plan.
- Goal to enhance earnings per share and stock price.
- Chairman Lee Jae-yong received highest dividends in South Korea.
Seoul, Feb 18 (NationPress) Samsung Electronics announced on Tuesday its decision to cancel treasury stocks amounting to 3 trillion won ($2.01 billion) as part of a buyback initiative aimed at enhancing shareholder value.
According to a regulatory filing, approximately 50.1 million common stocks and 6.9 million preferred shares will be retired by the company.
The cancellation is in line with a decision made during a board meeting in November to repurchase shares worth a total of 10 trillion won over the next year, as reported by Yonhap news agency.
As an initial measure, the company plans to buy back 3 trillion won worth of shares within three months and subsequently cancel all of them.
Through this reduction in the total number of outstanding shares, Samsung aims to increase earnings per share and support its stock price, ultimately benefiting its investors.
Additionally, Samsung Electronics Chairman Lee Jae-yong was reported to have received the highest dividends in South Korea last year, according to a corporate data tracker.
A survey by Leaders Index covering 560 companies that distributed dividends in cash and equivalents to shareholders in 2024 showed these firms collectively provided 40.7 trillion won ($28.2 billion) in dividends last year, marking a 10.4 percent increase from the previous year.
Lee's dividends amounted to 346.5 billion won last year, reflecting a 7.1 percent rise compared to the year prior.
Hyundai Motor Group Honorary Chairman Chung Mong-koo and his son, Euisun Chung, executive chair of the group, ranked second and third, respectively, with dividends of 189.2 billion won and 174.7 billion won.
SK Group Chairman Chey Tae-won ranked seventh with an annual dividend of 91 billion won.
Among the companies surveyed, 285 firms increased their dividends last year, 94 firms maintained the same levels as in 2023, while 181 firms reduced their dividends.
SK hynix, a major affiliate of SK Group, nearly doubled its dividends following record earnings due to increased demand for artificial intelligence (AI) chips.
—IANS
