"Hyundai Department Store Group's 'Single Holding Company Transition' Accelerates Shareholder Value Enhancement"

Hyundai GEF Holdings Decides to Cancel 6.49 Million Treasury Shares
Group Integrated IR Event Held on the 12th
"Strengthening Communication with the Market, Expanding Dividends"

Hyundai Department Store Group, which has transitioned to a single holding company system, plans to accelerate efforts to enhance shareholder value. To this end, it will employ various methods, including the cancellation of treasury shares of its holding company Hyundai G.F. Holdings and holding an integrated investor relations (IR) meeting involving all listed companies within the group.

Hyundai Department Store Headquarters
[Photo by Hyundai Department Store Group].

Hyundai G.F. Holdings, the holding company of Hyundai Department Store Group, announced on the 11th that its board of directors resolved to cancel 6,495,431 treasury shares. This represents 4.0% of the total issued shares after the completion of the capital contribution in kind, and the cancellation is scheduled to take place on December 12 following a resolution at the extraordinary general meeting of shareholders planned for November 8.

Treasury share cancellation refers to a company reducing the number of outstanding shares by canceling treasury shares it holds or has acquired, and is considered a representative shareholder return policy. When the total number of shares decreases, the value of existing shares held by shareholders often increases, which generally acts as a positive factor for the stock price.

Earlier, Hyundai G.F. Holdings (formerly Hyundai Green Food before the split) announced in January a plan to cancel its treasury shares within one year after the split to enhance shareholder value. A Hyundai Department Store Group official stated, "This decision to cancel treasury shares is the implementation of a promise made to the market and shareholders from the outset, expressing the group’s firm commitment to enhancing shareholder value."

Hyundai Department Store Group is also strengthening communication with the market. On the 12th, it will hold an integrated IR event called 'Corporate Day' at the NH Securities Tower in Park One, Yeouido, Seoul, with participation from all 13 listed companies within the group, including Hyundai Department Store, Home Shopping, and Green Food. This IR event, hosted by NH Investment & Securities, will be attended by over 20 institutional investors such as Shin Young Asset Management, Korea Investment Trust Management, Kiwoom Asset Management, and IBK Asset Management.

Executives responsible for IR from the 13 listed companies of Hyundai Department Store Group will directly present overviews of their businesses, second-half management conditions and performance, mid- to long-term growth strategies, and shareholder return plans.

A Hyundai Department Store Group official said, "We plan to actively share investment information, management strategies, and shareholder return plans of each listed company with the market, and to understand various market demands to raise the undervalued corporate value of each company." He added, "Going forward, we will regularize the group’s integrated IR events twice a year with participation from all 13 listed companies, and pursue various shareholder-friendly policies that can enhance corporate value, such as dividend increases and bonus share issues." In this regard, Hyundai Department Store Group established and is operating the 'Group Value Enhancement Committee' earlier this year, composed of financial officers from the 13 listed companies, to improve corporate and shareholder value.

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