LG Electronics to Cancel 760,000 Treasury Shares Next Year

Pursuing IPO for Indian Subsidiary as Well

Yonhap News

LG Electronics announced on the 17th that it will pursue an initial public offering (IPO) of its India subsidiary. Additionally, it unveiled a second value enhancement plan (hereinafter referred to as the value-up program), which includes the cancellation of approximately 760,000 treasury shares next year. This comes just two months after the first value-up program was announced in October, which outlined a mid- to long-term business strategy including achieving a return on equity (ROE) of over 10% by 2027.

In a disclosure on the same day, LG Electronics stated that it submitted the draft red herring prospectus (DRHP) for the India subsidiary IPO to the Securities and Exchange Board of India (SEBI) on the 6th.

LG Electronics is pursuing the India subsidiary IPO as part of its efforts to enhance corporate value and plans to make a final decision on the listing based on market conditions and preliminary demand forecasts.

Alongside this, to enhance shareholder value, the company decided to cancel treasury shares previously acquired within the scope of distributable profits next year. The cancellation volume is approximately 761,000 shares, which accounts for about 0.5% of LG Electronics' total issued shares.

By reducing the total number of issued shares through the treasury share cancellation, earnings per share (EPS) and book value per share (BPS) are expected to increase, potentially having a positive effect on shareholder value.

LG Electronics also announced that through a shareholder return policy applicable for three years until 2026, it will allocate at least 25% of net income based on consolidated financial statements to shareholder returns. To improve predictability for investors, the company will continue the minimum annual dividend of 1,000 KRW, which started this year, as well as semi-annual dividends.

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