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Samsung Electronics Buys 2.5 Trillion Won of Treasury Stocks
Increasing Shareholder Value
Samsung Electronics Buys 2.5 Trillion Won of Treasury Stocks
  • By Michael Herh
  • July 25, 2017, 02:15
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Samsung Electronics completed the second purchase of treasury stocks, all of which are going to be cancelled to increase shareholder value.
Samsung Electronics completed the second purchase of treasury stocks, all of which are going to be cancelled to increase shareholder value.

 

Samsung Electronics completed the second purchase of treasury stocks. All treasury stocks bought this time are going to be cancelled. This is one of Samsung Electronics' policies to boost shareholder value.

Samsung Electronics said it bought 1,125,000 shares of treasury stocks including common stock and preferred stocks from April 28 to July 24. The price per share was 2,244,657 won (US$20,200) so the purchase cost Samsung Electronics 2.524 trillion won (US$2.271 billion) in total.

As a result, the percentage of Samsung Electronics’s treasury stocks rose to 7.86%. "We will cancel all of the shares we bought this time," Samsung Electronics said,

This purchase is one of Samsung Electronics' policies to increase financial rewards for shareholders. In November last year, Samsung Electronics announced that it will pay quarterly dividends while using 50% of its surplus cash flow for shareholder return. In January, the company drew up a plan to buy treasury stocks worth 9.3 trillion won (US$8.37 billion) three to four times and cancel them in by the end of this year. As a beginning of the plan, Samsung Electronics bought 1,275,000 shares from the end of January to mid-April.

After that, Samsung Electronics announced that it will cancel all of its treasury stocks, including treasury stocks bought from January to April twice, first this year and second next year. According to the plan, half of the treasury stocks held by the company were canceled in early May. Samsung Electronics plans to additionally buy its treasury stocks one or two more times this year as planned. The company is planning to resolve to cancel the remaining portion of treasury stocks at a board meeting next year.