SK hynix to buy back $28.6 mil. worth of shares in 3 months before cancellation
SK hynix said Wednesday it will buy back 40 trillion won ($28.6 million) 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 through open-market purchases and complete the program by Nov. 19. The company said the move is aimed at enhancing shareholder value through…
SK hynix plans to repurchase and cancel $28.6 billion worth of its own shares over the next three months. The move comes after the chipmaker's shares were deemed undervalued. The company will begin buying back 24.07 million common shares on Thursday at 1.66 million won per share, completing the program by November 19. This represents approximately 3.3% of SK hynix's outstanding 730 million shares.
Following completion of the buyback, the company will cancel all repurchased shares. "We believe our shares are currently undervalued and have decided to buy back and cancel 40 trillion won worth of treasury shares to efficiently reallocate capital and enhance shareholder value," the company stated. SK hynix also plans to raise its shareholder return ratio to 50% or more, with FCF standing at 24.8 trillion won last year.
The company anticipates this number will increase significantly over the next few years, enabling shareholder returns to exceed 200 trillion won.
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.
