SK hynix to buy back $28.6 bil. worth of shares in 3 months before cancellation
SK hynix said Wednesday it will buy back 40 trillion won ($28.6 billion) worth of its own shares within the next three months and will cancel them. The chipmaker said in a regulatory filing that it will begin buying back 24.07 million common shares Thursday at 1.66 million won per share through open-market purchases and complete the program by Nov. 19. This accounts for about 3.3 percent of the…
SK hynix announced on Wednesday its plan to repurchase $28.6 billion worth of shares over the next three months, followed by cancellation of these shares. The company disclosed this decision in a regulatory filing. On Thursday, SK hynix will initiate the buyback by purchasing 24.07 million common shares at a rate of 1.66 million won per share through open-market transactions.
The program is set to be completed by November 19, accounting for approximately 3.3% of the company's 730 million outstanding shares. Following the completion of the buyback, SK hynix intends to cancel all the repurchased shares. The company expressed confidence in the current undervaluation of its shares, justifying the buyback and cancellation to effectively reallocate capital and boost shareholder value.
The company also revealed considerations for increasing dividends, which may include both regular and special dividend distributions. This news was further elaborated upon in a subsequent press release issued after the filing. Furthermore, SK hynix has refreshed its shareholder return policy for November 2024, reaffirming its commitment to return up to 50% of its cumulative free cash flow (FCF) from 2025 to 2027. The company plans to achieve this by increasing both regular and special dividend payouts.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
