Seoul: Samsung Electronics Co. announced plans to repurchase 3.9 trillion won (US$2.85 billion) worth of treasury stocks to enhance shareholder value and provide compensation to employees. At a recent board meeting, the company resolved to retire approximately 56.89 million common stocks and 7.83 million preferred shares, utilizing the previous day's closing prices of 61,700 won and 51,300 won, respectively, as stated in a regulatory filing.
According to Yonhap News Agency, the buyback is scheduled to commence on Wednesday and will continue through October 8. Of the total repurchased amount, 2.8 trillion won worth of shares will be canceled to increase shareholder value, while 1.1 trillion won will be allocated for employee bonuses, Samsung Electronics confirmed.
This action concludes Samsung Electronics' initiative, announced in November, to repurchase a total of 10 trillion won of its own shares over a one-year timeline. Initially, the company acquired 3 trillion won worth of shares in November, subsequently canceling the entire sum three months later. In February, Samsung Electronics repurchased an additional 3 trillion won in shares, designating 2.5 trillion won for cancellation.