[Public Notice+] Dongseong Corporation Decides to Cancel 1.45 Million Treasury Shares

[Asia Economy Reporter Eunmo Koo] Dong Sung Corporation is enhancing shareholder value through the cancellation of treasury shares.

Dong Sung Corporation, the business holding company of the Dong Sung Group, announced through a disclosure on the 27th that it has decided to cancel a total of 1,451,958 common shares it held by resolution of the board of directors. This represents 3.19% of the total issued shares.

The treasury shares held by Dong Sung Corporation were acquired in July 2015 through the exercise of stock purchase rights during the absorption merger of the former business division, Dong Sung HiChem. With this cancellation decision, Dong Sung Corporation's capital will decrease by 145.195 million KRW, lowering it to approximately 43.99301 billion KRW.

Treasury share cancellation is a method where a corporation cancels the shares it holds, reducing the total issued shares and thereby increasing the value per share. Since the number of issued shares decreases without a change in the company's value, the value of existing shareholders' equity increases. Dong Sung Corporation explained that it will share the effects of increased Return on Equity (ROE) and Earnings Per Share (EPS) resulting from this treasury share cancellation with its shareholders.

A representative of Dong Sung Corporation stated, “In response to shareholders' concerns due to the recent decline in stock prices, the company decided to cancel treasury shares as part of its efforts to enhance value,” adding, “The agenda will be finally approved at the regular shareholders' meeting next month, after which practical procedures will be carried out.”

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