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Photo = Yonhap news |
[Alpha Biz= Reporter Kim Jisun] Celltrion has decided to implement a dual cash and stock dividend, continuing its active shareholder return policy.
On December 13, the company announced the board's resolution to approve the simultaneous cash and stock dividends. These dividends will be finalized at the annual general meeting in March 2025, with the dividend record date set for December 31, 2024.
For each common share, shareholders will receive 750 KRW in cash and 0.05 shares as stock dividends. The total cash dividend amounts to approximately 153.7 billion KRW, and the total number of shares to be distributed is about 10.25 million shares. The dividend calculation excludes the company's treasury shares, totaling around 12.04 million shares, and is based on the remaining 200.53 million shares.
This marks the largest dividend payout in Celltrion’s history. The company stated that it believes its current market value is significantly undervalued compared to its future growth potential, prompting this decision. With expected revenue growth from its biosimilars portfolio, new product expansions, and drug development achievements, Celltrion aims to share its future growth value with its shareholders. This is the second stock dividend in two years.
In addition to the dividend, Celltrion plans to enhance shareholder returns by increasing cash dividends. The company has set a medium-to-long-term target of increasing its cash dividends to approximately 30% of post-investment profits.
Moreover, Celltrion has also been pursuing an aggressive shareholder-friendly policy through stock buybacks and retirements. This includes a large-scale stock buyback and retirement plan, aiming to improve its undervalued corporate value and restore shareholder value. Earlier this month, the company resolved to repurchase and retire approximately 560 billion KRW worth of shares, following similar buybacks totaling about 700 billion KRW earlier in the year. Another 560 billion KRW stock repurchase is planned for early next year.
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
