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SEOUL - Samsung Electronics Co (F:SAMEq). announced Tuesday it will repurchase shares worth approximately 3.91 trillion Korean won ($3.9 billion) to enhance shareholder value and fund employee stock-based compensation programs.
According to a board resolution approved July 8, the South Korean tech giant plans to buy back 56.9 million common shares valued at 3.51 trillion won and 7.8 million preferred shares worth 401.9 billion won. The repurchase program will run from July 9 through October 8, 2025.
The company stated that approximately 1.1 trillion won of the repurchased shares will be allocated for employee and executive stock-based compensation, while the remaining 2.81 trillion won will be used for share cancellation to boost shareholder value.
"The treasury shares to be acquired for stock-based compensation purposes will be provided to employees and executives as a means of driving business performance and enhancing corporate value," the company said in its press release statement.
For executives, the company plans to implement a stock-based compensation program for 50% or more of the 2024 Overall Performance Incentive, with shares to be granted in January 2026. These shares will carry selling restrictions of one to two years from the grant date.
Prior to this announcement, Samsung (KS:005930) held approximately 42.9 million common shares (0.7% of total) and 6.6 million preferred shares (0.8%) as treasury stock.
The repurchase will be conducted through the open market with Samsung Securities (KS:016360), Shinhan Securities, and KB Securities serving as the consignment investment brokers.
All six independent directors were present at the board meeting where the decision was unanimously approved.
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