Celltrion Announces Stock Dividend and Additional Share Buyback, Focuses on Maximizing Shareholder Returns

Holdings to Purchase Additional KRW 100 Billion in Shares
"Measure to Strengthen Commitment to Responsible Management"

Celltrion announced on May 21 a comprehensive shareholder value enhancement plan centered on a stock dividend, share buyback, and additional acquisition of shares by the largest shareholder.

This comprehensive plan is a concretization of the shareholder value enhancement strategy that Celltrion previewed on its website on May 19, and it is an extensive measure jointly implemented by the company and its largest shareholder.

The scale of the stock dividend is approximately 10.92 million shares, with 0.05 new shares allocated per common share. This exceeds last year's issuance of about 8.49 million shares. The new shares are scheduled to be listed on June 30.

The company will additionally purchase treasury shares worth KRW 100 billion (approximately 550,000 shares). Previously, Celltrion retired treasury shares worth KRW 1.8 trillion (about 9.11 million shares) last month. If the newly acquired shares are also retired within this year, the total amount of treasury shares retired in 2024 will reach approximately KRW 2 trillion (about 10 million shares), according to the company.

For the cumulative three-year period, Celltrion will have retired about 3.43 million shares in 2024, about 4.97 million shares last year, and, including the newly acquired shares, will have retired approximately 18.56 million shares, which corresponds to 8.4% of the total number of issued shares.

Celltrion Holdings, the largest shareholder, has also decided to acquire an additional KRW 100 billion worth of Celltrion shares. The company explained that this is a measure to strengthen its commitment to responsible management. The Celltrion employee stock ownership association will also proceed with its 12th subscription.

Celltrion stated that it surpassed its disclosed shareholder return rate target (an average of 40% for 2025–2027 under the Value-Up Program), achieving 204% in 2024 and 103% last year. The company expects to exceed the target again this year, as another large-scale retirement of treasury shares is reflected.

A Celltrion official stated, "Despite macroeconomic uncertainties, Celltrion expects to maintain stable growth in its second-quarter results based on solid fundamentals," adding, "We will do our utmost to enhance shareholder value through bold and continuous shareholder-friendly policies, while simultaneously increasing corporate value."

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