(Photo= Yonhap news)

 

[Alpha Biz= Reporter Kim Sangjin] POSCO Holdings plans to pursue a shareholder return policy by completely retiring approximately 2 trillion won worth of its own shares by 2026.

On the 12th, POSCO Holdings held the "3rd POSCO Group Secondary Battery Materials Business Value Day" at POSCO Center in Gangnam-gu, Seoul. The event was attended by Jung Gi-Seop, Chief Strategy Officer and CEO, Kim Jun-Hyung, Vice President of Secondary Battery Materials, and Hong Young-Jun, Vice President of the Secondary Battery Materials Research Institute, along with officials from POSCO Holdings, institutional investors, and analysts from domestic and international organizations.

CEO Jung stated, "We will focus the group's resources and capabilities on the steel and secondary battery materials businesses," and added, "Alongside improving capital efficiency through growth investments and adjusting low-profit assets, we will continue strong shareholder return policies such as completely retiring all treasury shares excluding the mandatory deposit for convertible bonds over the next three years."

To enhance capital efficiency, POSCO Holdings has confirmed plans for a restructuring of 120 projects, including discontinuing businesses that do not align with their strategic goals, low-profit assets, and obsolete assets. POSCO Group expects to complete over 97% of the restructuring targets by 2026, anticipating approximately 2.6 trillion won in cash inflows.

The cash inflow will be used for reinvestment in core businesses and shareholder returns. POSCO Holdings plans to retire all 6% (approximately 5.25 million shares, worth about 1.9 trillion won) of its treasury shares excluding the 4% (approximately 3.45 million shares) mandatory deposit for convertible bonds by 2026, and additionally purchase and immediately retire around 100 billion won worth of new treasury shares. They also announced a policy to immediately retire all newly acquired treasury shares aimed at enhancing shareholder value, except those used for employee incentives.
 

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