DB HiTek to Cancel Treasury Shares for the First Time Since Founding... Worth About 70 Billion Won

A total of 1,486,000 shares to be canceled in two phases
35.8% of total treasury stock holdings... EB issuance planned
"Enhancing shareholder value and strengthening competitiveness through securing investment resources"

On September 10, DB HiTek announced that it would cancel 1,486,000 shares of its own stock to enhance shareholder value and revitalize the stock market. The cancellation will take place in two phases. This marks the first time since its founding that DB HiTek has canceled treasury shares.

DB HiTek Bucheon Campus. Photo by DB HiTek

The shares to be canceled represent 35.8% of the company's total treasury stock holdings, which amount to 4,150,991 shares. The value is approximately 70 billion won. The company plans to cancel 894,000 shares in the first phase by September 30, and an additional 592,000 shares next year.

DB HiTek will also issue exchangeable bonds (EB) using 2,220,000 treasury shares. The purpose is to secure funds for the expansion of the Fab 2 cleanroom in Eumseong County, North Chungcheong Province, and for mass production investment in next-generation power semiconductors. The issuance is expected to reach 100 billion won.

In addition, 444,000 shares will be used for employee compensation and contributions to the in-house employee welfare fund.

DB HiTek stated, "By canceling treasury shares in line with government policy, we aim to enhance shareholder value and strengthen our business competitiveness by securing investment resources."

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