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Photo = Yonhap news |
[Alpha Biz= Kim Jisun] Coway Co., Ltd. announced on May 8 that it will repurchase KRW 110 billion worth of its own shares as part of its shareholder value enhancement program. The company disclosed the plan in a regulatory filing and has appointed KB Securities to manage the repurchase through a trust agreement.
The planned buyback involves 1,292,597 common shares, based on the previous day’s closing price of KRW 85,100 per share. The repurchased shares will be held for less than one year, and the company noted that any future cancellation of these shares will require a separate resolution by the board of directors.
Share buybacks and cancellations are widely regarded as key shareholder return strategies, as they reduce the number of shares outstanding in the market and thereby increase the value of remaining shares.
A Coway spokesperson commented, “This buyback is a part of the value-up program announced earlier this year, aimed at enhancing shareholder returns.”
In February, Coway announced it would increase its total shareholder return ratio—from 20% to 40% of consolidated net income—through a combination of dividends and share repurchases.
At the shareholders’ meeting held in March, Coway also resolved to cancel approximately 650,000 shares previously acquired in response to shareholders exercising appraisal rights during the spin-off of its cosmetics business.
Separately, Coway also announced a KRW 210 billion short-term loan, in the form of commercial paper, to refinance existing credit line borrowings.
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
