POSCO Holdings Cancels Treasury Shares for the First Time in 18 Years... Worth 672.2 Billion KRW
Resolution by the Board on the 12th, Representing 3% of Issued Shares
[Asia Economy Reporter Jeong Dong-hoon] POSCO Holdings held a board meeting on the 12th at the POSCO Center in Daechi-dong, Seoul, and decided to cancel treasury shares worth 672.2 billion KRW (based on the closing price on the 11th) to enhance shareholder value.
The total number of treasury shares decided to be canceled on this day is 2,615,605 shares, which accounts for 3% of the issued shares.
Treasury share cancellation is a representative shareholder return policy that enhances shareholder profits by increasing the value per share through reducing the number of issued shares by canceling the shares held by the company. Following this decision, the total number of issued shares will decrease from the existing 87,186,835 shares to 84,571,230 shares.
POSCO Holdings stated, "Through the cancellation of treasury shares, we have conveyed the company's commitment to shareholder-friendly policies to the market," and added, "The company plans to continue reviewing and implementing various measures for shareholder returns." POSCO Holdings had previously announced in January that it would pursue partial cancellation of treasury shares within the year to enhance shareholder value.
This treasury share cancellation by POSCO Holdings is the first in 18 years since 2004. POSCO Holdings had canceled a total of 9.3 million shares in four rounds: 2.9 million shares in 2001, 2.81 million shares in 2002, 1.81 million shares in 2003, and 1.78 million shares in 2004.
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Meanwhile, the board also approved a proposal to pay a dividend of 4,000 KRW for the second quarter. As a result, POSCO Holdings will pay a total dividend of 8,000 KRW per share in the first half of the year, including the first quarter. Last year, POSCO Holdings paid a dividend of 17,000 KRW, more than double that of 2020, achieving a dividend yield of 6.2%, maintaining one of the highest dividend policies among domestic companies.
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