Samsung Electronics to buy back 10 trillion won of its own shares… to cancel 3 trillion won within three months Entered 2024.11.15. 6:35 PM The board of directors held on the 15th resolved to improve shareholder value This is the first large-scale share buyback in seven years since 2017 Samsung Electronics will buy back 10 trillion won of its own shares in order to improve shareholder value. Samsung Electronics announced that at its board meeting held on the 15th, it had resolved to purchase 10 trillion won worth of its own shares. The company plans to purchase its own shares in installments over the next year. Of this, the company plans to cancel all of its treasury stock worth 3 trillion won within three months, and plans to purchase and cancel them in the market from November 18 to February 17 next year. The offering involves 50,144,628 common shares and 6,912,036 preferred shares. The remaining 7 trillion won worth of treasury stock will be decided after careful consideration of the specific use and timing when each board of directors resolves to buy back the stock. This is the first time in seven years since 2017 that Samsung Electronics has decided to buy back its own shares on a large scale, approaching 10 trillion won. In 2017, the company divided and bought back 9.3 trillion won worth of its own shares and cancelled them. Recently, Samsung Electronics’ stock price closed at 49,900 won on the 14th amid talk of a crisis both at home and abroad. It has been four years and five months since Samsung Electronics’ shares fell to the 40,000 won range. The next day, it rebounded by more than 7% again, recovering to the 50,000 won range, but there has been no continuation of the notable upward trend since September.
>>8 This is information that should be publicly disclosed. Buying back shares and canceling them reduces the number of shares issued, which increases the value of the stock.
Generally speaking, it’s not a bad decision for a company with excess cash to buy back its own shares. The problem is that the Korean government and central bank will find out whether Samsung has excess cash.
>>14 Even if that’s the case, if they were buying back their own shares on a regular basis, it would be one thing, but with the stock price falling at this point in time, it’s hard to help but speculate Well, since it’s a public company, they probably can’t hide it.
>>24 It doesn’t even seem like they’re talking about it being part of a value-up initiative or increasing shareholder value. It’s obvious they were just trying to maintain the stock price.
>>29 That’s what happened in the end, but the problem is that there’s no sense that the buyback was planned in advance. Normally, if you buy back a company, some information would leak out. So it’s not about increasing value for shareholders, it’s about increasing value for management. In Samsung’s case, the impact is much broader.
>>32 I’ve never heard of any leaks in American share buybacks, but if they are, that’s a real problem It just seems like they want to say whatever they want to say bad things about them.
Comments