Samsung Electronics plans US$7.2 billion buyback to boost shareholder value
· CNA · JoinSEOUL: Samsung Electronics plans to buy back shares worth 10 trillion won (US$7.17 billion) over a one-year period to boost shareholder value, it said in a regulatory filing submitted after the market closed on Friday.
Of the total, three trillion won worth of shares, or 50.14 million common shares and 6.91 million preferred shares, will be repurchased in the next three months and cancelled, Samsung said in a separate statement.
The board of directors will decide on ways to enhance shareholder value, including when and how to use the remaining seven trillion in the repurchase programme, it said.
It is the first time Samsung Electronics has decided to buy back shares since 2017 when it repurchased a total of 20.7 trillion won worth.
The world's top memory chip maker said last month it would focus on producing high-end chips and was making progress on a major supply deal, as it sought to allay investor concerns over its semiconductor business that suffered a 40 per cent quarter-on-quarter profit plunge.
Shares of Samsung Electronics rose 7.2 per cent on Friday, their biggest daily jump since March 2020 and rebounding from their lowest level since mid-June 2020. They were still down 32 per cent year-to-date.
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