Samsung C&T to Cancel All Treasury Shares Worth 3 Trillion KRW for Shareholder Returns

Return of 60-70% Level of Dividend Income from Affiliates

[Asia Economy Reporter Kim Pyeonghwa] Samsung C&T held a board meeting on the 15th and finalized a three-year shareholder return policy from this year through 2025. Samsung C&T will maintain a stable shareholder return stance through consistent policy implementation, but to enhance corporate value, it will partially cancel all its treasury shares. After thoroughly reviewing ways to utilize treasury shares, it was decided to cancel all shares in connection with the current three-year shareholder return policy to increase corporate value.

Samsung C&T plans to maintain a dividend policy funded by approximately 60-70% of the dividends received from affiliates while canceling all treasury shares over the next five years. The treasury shares held by Samsung C&T consist of 24,718,099 common shares (13.2%) and 159,835 preferred shares (9.8%), with a market value of about 3 trillion KRW. The annual cancellation volume will be decided by the board of directors.

Samsung C&T will strive to proactively respond to uncertain management environments over the three-year period. It plans investments totaling 3 to 4 trillion KRW during this time. The funds generated will be used to secure future growth engines and to advance business structures with a stable financial structure.

In particular, to secure new growth engines, it will expand businesses in eco-friendly energy sectors such as solar power, hydrogen, SMR, and battery recycling. In the bio and healthcare fields, including bio-processing, pharmaceutical development and research outsourcing, and next-generation therapeutics, it is actively considering entry. To strengthen the competitiveness of existing businesses, it will also promote product and service advancement and digital transformation.

A Samsung C&T official said, "The cancellation of treasury shares is a representative shareholder return policy, and this plan demonstrates a strong commitment to enhancing shareholder value." He added, "We will continue efforts to improve shareholder value and maintain sincere communication with various stakeholders."

This content was produced with the assistance of AI translation services.