Kumho Petrochemical to Cancel Half of Its Treasury Shares Within 3 Years "Worth 380 Billion Won"

Board Decides to Cancel Approximately 2.62 Million Shares

Kumho Petrochemical has decided to cancel 50% of its treasury shares, worth approximately 390 billion KRW at the current stock price, within three years. Separately, it will acquire additional treasury shares worth 50 billion KRW for further cancellation.

On the 6th, Kumho Petrochemical held a board meeting and decided to cancel 2,624,417 common shares, equivalent to 50% of the treasury shares held by the company, in installments over three fiscal years from 2024 to 2026 to enhance shareholder value.

One-third of these, 875,000 shares, are scheduled to be canceled on the 20th, which amounts to approximately 129.1 billion KRW based on the closing price on the 5th.

Additionally, Kumho Petrochemical plans to acquire treasury shares worth 50 billion KRW, equivalent to 16.5% of the current net profit, over six months for cancellation purposes. Once the purchase is complete, the board will decide to cancel all of these shares as well.

A Kumho Petrochemical official stated, "This plan to acquire and cancel treasury shares, equivalent to 5 to 10% of net profit as announced in our shareholder return policy at the end of 2021, exceeds that range by more than 5 percentage points," adding, "Despite the downturn in the petrochemical market, we continue to pursue an active shareholder return policy and will do our best to enhance long-term shareholder value going forward."

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