Samsung Electronics will repurchase treasury stocks worth approximately two trillion won, a record high in its history, in order to stabilize its stock price and promote shareholder value.
The company announced on Nov. 26 that it would reacquire 1.65 million common treasury shares and 250,000 non-common treasury shares at a cost of 1.9635 trillion won (US$1.7818 billion) and 229.75 billion won (US$208.49 million), respectively. The trading is expected to be carried out between November 27 and February 26, 2015.
This year, Samsung Electronics lost about 20 percent in stock price, falling to around 1.2 million won (US$1090) per share due to sluggish smartphone sales, and shareholders have demanded treasury stock purchases with a higher dividend payout ratio, which was 7.23 percent at the end of 2013.
In the meantime, the company bought 11.5 million shares of Cheil Worldwide through off-hours block trading on Nov. 26. The per-share and total acquisition costs were 19,200 won (US$17.44) and 220.8 billion won (US$200.6 million), respectively. Its shareholding ratio in Cheil Worldwide rose to 12.6 percent, so it has become the second-largest shareholder.