[Alpha Biz=(Chicago) Reporter Kim Jisun] SK Square retires treasury stock worth 106.3 billion won.

SK Square held a board of directors meeting on the 22nd and decided to temporarily retire 106.3 billion won of treasury shares on October 4th to enhance shareholder value. The treasury shares scheduled for retirement are 2,486,535 common shares, equivalent to 1.8% of the total issued shares.

Retirement of treasury stock is a representative strategy that companies implement to increase shareholder value. When a company buys back and retires its own shares, the company's total number of shares is reduced and the value per share can be expected to rise.

SK Square repurchased its own stock for two months from March 30 to June 14, using ordinary dividend income in 2022 as a source of finance. The amount of 106.3 billion won of treasury shares that the company decided to retire was set based on the average stock price of SK Square for two months. During this period, the company's share price rose by about 20%. Based on the closing price on the 22nd (45,950 won), the amount of treasury shares to be retired is about 114.3 billion won.

SK Square announced at its general shareholders' meeting on March 30 this year that it would regularly repurchase/retire treasury shares or implement cash dividends from 2023 to 2025 to enhance shareholder value.

The total proceeds from the sale of shares in SK Shielders were 864.6 billion won. At the end of the deal in July, 414.6 billion won and 450 billion won will flow into SK Square within the next two years.

 

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