SK Hynix Announces Massive Treasury Share Buyback
SK Hynix has decided to acquire and completely cancel 40 trillion won ($30.76 billion) worth of its own shares, throwing down a gauntlet to enhance shareholder value. This measure is interpreted as a reflection of the judgment that the company’s intrinsic value is not adequately reflected in the cur
SK Hynix, the leading AI memory market player, has announced a massive treasury share buyback plan, set to acquire and cancel 40 trillion won worth of shares, equivalent to approximately $30.76 billion. This significant move was approved during a Board of Directors meeting on August 19, reflecting the company's belief that its intrinsic value is not fully represented in the current stock price.
SK Hynix plans to implement this share repurchase for about three months, starting from August 20, and then cancel the shares entirely. The acquired shares amount to around 24.07 million, which constitute about 3.3% of the total issued shares. This is the largest share cancellation in the history of domestic listed companies. SK Hynix had previously announced that it would return 50% of its three-year cumulative free cash flow from 2025 to 2027 to shareholders, but the company's accelerating performance improvement has led to a decision to consider early returns.
The company's financial indicators are showing a strong upward trend, with net cash reaching approximately 69 trillion won as of the end of Q2. With this shareholder return policy, SK Hynix aims to solidify its leadership in the AI semiconductor market while strengthening its commitment to shareholder-friendly management. The decision to buy back and cancel shares will directly increase the value per share by reducing the number of outstanding shares.
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