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 at 1.662 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 has announced plans to repurchase 40 trillion won worth ($28.6 million) of its own shares over the next three months, before subsequently canceling them. The move, detailed in a regulatory filing, entails the company purchasing 24.07 million common shares at a rate of 1.662 million won per share through open-market transactions, concluding the program by November 19.
This equates to approximately 3.3 percent of SK hynix's total 730 million outstanding shares. Following the completion of the buyback, the company intends to cancel all of the repurchased shares. In a statement, SK hynix expressed confidence in its shares being undervalued, justifying the buyback and share cancellation as a means to optimize capital allocation and increase shareholder value.
The company also hinted at potential future actions to boost dividends, including higher regular distributions and special payouts. Post-filing, SK hynix reinforced its November 2024 shareholder return policy, affirming its commitment to returning up to 50 percent of its cumulative free cash flow (FCF) from 2025 to 2027 by augmenting both regular and special dividend payments.
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