Kwangmoo to Cancel Treasury Shares Worth 5.1 Billion Won to Enhance Shareholder Value... Pursuing M&A and New Businesses

KOSDAQ-listed company Kwangmoo has decided to cancel its treasury shares as part of its efforts to enhance shareholder value and practice responsible management.

On the 16th, Kwangmoo announced that it will cancel 1,755,962 treasury shares it currently holds. This decision was unanimously approved by all directors present at the board meeting held on the morning of the previous day (15th).

This cancellation targets 1,736,962 shares acquired through a trust agreement with Korea Investment & Securities in April, as well as 19,000 shares previously held, amounting to 2.8% of the total number of issued shares. The estimated amount for cancellation is approximately 5.15 billion won, and the cancellation date is scheduled for the 23rd. After the cancellation, the total number of issued shares will decrease to 61,879,864. The cancellation of treasury shares is considered a representative shareholder-friendly policy, as it reduces the number of shares in circulation, thereby improving stock price elasticity and earnings per share (EPS).

Kwangmoo explained, "The cancellation of treasury shares is being carried out to enhance shareholder and corporate value, and only the total number of issued shares will decrease without any reduction in capital."

The company is pursuing balanced management that fulfills both shareholder value enhancement and financial stability by simultaneously investing in growth. Recently, the largest shareholder changed to Hyeopjin, and under the leadership of newly appointed CEO Woo Seungyong in September, the company is actively pursuing measures to secure substantial profitability, such as mergers and acquisitions (M&A) and entry into new businesses, to improve its profit structure.

The company has sufficient resources for M&A and new business ventures. As of the end of the third quarter, liquid assets that can be immediately converted to cash amount to approximately 162.8 billion won. Of this, cash and cash equivalents, including deposits at financial institutions and financial assets, total 124.9 billion won, while listed stocks of other companies amount to 37.9 billion won.

Woo Seungyong, CEO of Kwangmoo, stated, "This cancellation of treasury shares is a strong expression of our commitment to resolving undervaluation of our stock, and we will continue to make ongoing efforts beyond this year's treasury share purchases and cancellations." He added, "Based on financial stability, we will continue to strengthen our business competitiveness and growth momentum." He also emphasized, "Since the change in the largest shareholder, we have been improving management stability and resolving various risks," and added, "At the beginning of next year, we plan to restructure our business and diversify our operations to establish a stable client base and operating profit structure."

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