Samsung to retire 4.8 trillion won of stock to boost price

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Samsung to retire 4.8 trillion won of stock to boost price

Samsung Electronics said on Friday that it will retire 4.8 trillion won ($4.29 billion) worth of shares in line with efforts to benefit shareholders.

The Korean tech company decided to retire 449 million common shares along with 80 million preferred shares.

The amounts represents 7 percent of common shares and 9 percent of preferred shares.

Samsung Electronics’ common shares ended at 41,850 won and 33,750 won for preferred shares on Friday.

The move is a follow-up to a decision made in April 2017, when the company vowed to retire 899 million common shares and 161 million preferred shares.

Samsung already retired around half of the amount in May last year.

The company said the process will be completed by Tuesday.

Samsung Electronics said the move will benefit shareholders by increasing the value of the respective shares that remain on the market.

The company added that it will continue to bolster its business competitiveness and actively roll out programs which benefit shareholders.

In the 2015 to 2017 period, Samsung Electronics paid out dividends of 12.9 trillion won to shareholders.

While the retirement of shares is expected to raise the value of Samsung Electronics’ shares, there are some that speculates that the move is targeted at solidifying heir Lee Jae-yong’s stake within the company.

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