Samsung Electronics to repurchase $2.85 bil. worth of treasury stocks
Samsung Electronics's logo is seen at the company's office building in Seocho District in this undated photo, Seoul. Yonhap
Samsung Electronics said Tuesday it will repurchase 3.9 trillion won ($2.85 billion) worth of treasury stocks to improve shareholder value and provide compensation to its employees.
At its board meeting, the company decided to retire around 56.89 million common stocks and 7.83 million preferred shares, based on the previous day's closing prices of 61,700 won and 51,300 won, respectively, according to the company in a regulatory filing
The buyback will take place from Wednesday through Oct. 8.
Of the total, 2.8 trillion won worth of shares will be canceled to boost shareholder value, while the remaining 1.1 trillion won will be allocated for employee bonuses, the company said.
The latest repurchase completes Samsung Electronics' plan announced in November to buy back a total of 10 trillion won worth of its own shares over a one-year period.
As the first step, the company bought back 3 trillion won worth of shares in November and canceled the entire amount three months later.
In February, it repurchased another 3 trillion won in shares, of which 2.5 trillion won was designated for cancellation.