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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] LG Uplus announced a major shareholder return initiative, including the retirement of all treasury shares currently held and a new share buyback worth KRW 80 billion—the company’s first in four years.
According to a public disclosure on July 21, LG Uplus will cancel all 6,783,006 treasury shares it currently owns on August 5. This represents approximately 1.55% of the company’s total outstanding shares. The shares were previously repurchased in 2021 for KRW 100 billion.
In addition to the cancellation, LG Uplus will purchase up to KRW 80 billion worth of additional treasury shares. Based on the July 20 closing price of KRW 14,990 per share, this equates to approximately 5,336,891 shares, or 1.22% of the company’s current outstanding shares prior to the retirement. The share buyback will begin on August 4 and be carried out over the course of one year.
These actions are part of the company’s "Value-Up Plan," announced in November 2023, which includes measures to improve capital efficiency such as the cancellation of treasury stock and a flexible share repurchase strategy.
In a separate move, LG Uplus also declared an interim dividend of KRW 250 per share, amounting to a total payout of approximately KRW 107.4 billion. This represents a dividend yield of 1.7%. The record date for the interim dividend is August 5, with payments to shareholders scheduled for August 20.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
