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Photo = Korea Zinc |
[Alpha Biz= Kim Jisun] Seoul, September 18 – Korea Zinc announced today that it will cancel all of its treasury shares within this year as part of its corporate value enhancement (“Value-Up”) plan, aiming to lift its shareholder return ratio into the 200% range.
The company originally acquired treasury shares—equivalent to 9.85% of its total outstanding stock, or 2,040,030 shares—through a public tender offer to fend off a takeover attempt by the MBK Partners–Youngpoong consortium. Korea Zinc has since pledged to cancel the entire amount.
Earlier this year, the company carried out two cancellations in June and September totaling 681,000 shares. The remaining shares will be retired in December.
With these measures, Korea Zinc expects its shareholder return ratio to reach over 200% in 2024. The ratio is calculated by dividing the total amount of dividends plus share buybacks and cancellations by net profit. As of the first half of the year, the ratio stood at 113.1%.
The company also anticipates a significant decline in its retained earnings ratio—from 8,597% at mid-year to below 8,000% on a full-year basis. Lower retained earnings indicate a reduction in accumulated reserves. Korea Zinc had already outlined in its 2024–2026 Value-Up roadmap a goal of maintaining an average shareholder return ratio of 40% or higher and a retained earnings ratio below 8,000%.
In addition, the company plans to strengthen its dividend policy. In line with the Korean government’s proposed tax revisions, Korea Zinc intends to adjust its annual dividend to qualify as a “high-dividend company.” This designation would allow shareholders to benefit from preferential separate taxation on dividend income from 2025 through 2028.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
