Samsung Electronics said Tuesday it would cancel 3.05 trillion won ($2.11 billion) worth of its own previously purchased shares to boost shareholder value.
The company’s board of directors approved the retirement of 50.1 million common stocks and 6.91 million preferred stocks, with the cancellation set to take place Thursday.
In addition, Samsung decided to acquire an additional 3 trillion won in treasury shares between February 18 and May 16 to enhance shareholder value. The company plans to purchase 48.15 million common shares worth 2.7 trillion won and 6.63 million preferred shares worth 303.6 billion won.
Of this, approximately 500 billion won will be allocated as employee compensation, and the remaining 2.5 trillion won will be used to stabilize the stock price and improve shareholder value.
This move follows Samsung’s November 2024 decision to buy back shares worth 10 trillion won over the course of one year. The buyback was aimed at addressing faltering stock prices and competition in the AI chip sector.
However, after the initial announcement, shares increased only 4.67% over three months, from 53,500 won to 56,000 won, and closed Tuesday at 56,900 won, up 1.61% from the previous day.
