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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] Company to retire non-voluntary treasury shares acquired during past mergers and restructuring
LG Electronics announced on Feb. 12 that it will cancel all non-voluntary treasury shares it currently holds as part of efforts to enhance shareholder value.
The company disclosed that its board of directors approved a capital reduction through the cancellation of 1,749 common shares and 4,693 preferred shares, each with a par value of KRW 5,000.
The shares subject to cancellation were acquired during past corporate restructuring processes, including the 2000 merger with the former LG Information & Communications and the 2002 transition to a holding company structure.
Upon completion of the cancellation, LG Electronics’ capital will decrease slightly from KRW 904.169 billion to KRW 904.137 billion, a reduction of approximately KRW 32 million.
The total number of outstanding shares will also decline marginally. Common shares will decrease from 162,886,387 to 162,884,638, while preferred shares will fall from 17,185,992 to 17,181,299. The capital reduction is subject to approval at the regular shareholders’ meeting scheduled for March 23.
An LG Electronics official said the cancellation applies only to treasury shares held by the company and will not affect the number of shares owned by general shareholders. No additional procedures, such as submission of old share certificates or issuance of new ones, will be required.
LG Electronics has been actively pursuing shareholder return measures since last year. In July, it canceled 761,427 treasury shares acquired within the scope of distributable profits. Last month, the company also announced an additional KRW 100 billion share repurchase program as part of its ongoing shareholder value enhancement strategy.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
