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Photo = Celtrion |
[Alpha Biz= Kim Jisun] Celltrion has announced the full retirement of approximately ₩200 billion worth of treasury shares acquired this year, aiming to maximize shareholder value.
On Friday, the company stated that it had decided to cancel 1.1 million treasury shares, continuing its recent series of share buybacks. The entire batch of treasury shares acquired in 2024, totaling 1,101,379 shares, will be retired. This represents 11% of the company’s total treasury shares and 0.5% of total outstanding shares, with a market value of approximately ₩203.3 billion based on the closing price on the 13th.
This follows a previous buyback initiative in December 2023, when the company retired 3,011,910 shares (25% of its treasury stock at the time), worth approximately ₩553.3 billion. The final cancellation was completed in January 2024.
As a result of the latest stock retirement, Celltrion’s total outstanding shares will decrease from 214,108,119 to 213,006,740. The official cancellation date for these shares is set for March 25. Additionally, Celltrion has pledged to retire any further treasury shares acquired this year.
This decision was made at the board meeting on the 14th as part of ongoing efforts to enhance shareholder value. By reducing the number of outstanding shares, the company aims to increase the value of shares held by existing investors.
Celltrion is known for prioritizing shareholder communication, and this move aligns with feedback from investors. The company has been implementing various shareholder-friendly policies, including share buybacks and dividend increases, to foster long-term growth alongside its shareholders.
In 2023, Celltrion acquired a total of ₩436 billion worth of treasury shares and recently announced an additional ₩100 billion buyback in February 2024, which is currently in progress. When combined with previous buyback plans, the company's total treasury stock purchases since January 2024 amount to approximately ₩200 billion.
Furthermore, in December 2023, Celltrion’s board approved its largest-ever cash and stock dividend distribution, set to be finalized at the Annual General Meeting on March 25. The company will distribute ₩750 per common share in cash dividends (totaling approximately ₩153.8 billion) and 0.05 new shares per common share (totaling approximately 10.25 million shares).
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
