Hugel to retire 300,000 treasury shares in a KRW 53.7 billion shareholder return

[Financial News] Hugel has decided to retire treasury shares worth approximately KRW 53.7 billion. The move is intended to enhance shareholder value by retiring 300,000 of its treasury shares and stabilize the share price by reducing the number of shares. Hugel disclosed that its board met on the 4th and decided to retire 300,000 common shares. The planned cancellation amount is KRW 53.7345 billion, and the planned retirement date is November 11.
The shares targeted for retirement are treasury shares the company has already acquired. They account for approximately 2.4% of the 12,515,173 shares issued in total. Once the retirement is complete, the total number of shares issued will fall to 12,215,173.
The company explained that the purpose of the decision was to retire treasury shares acquired within the scope of distributable profits in order to enhance shareholder value and stabilize the share price. The measure follows a board resolution based on the proviso to Article 343(1) of the Commercial Act.
Because this retirement will use treasury shares already acquired, it will not involve an injection of new funds. In addition, while retiring treasury shares will reduce the number of shares issued, it will not change the company's capital stock.
The planned retirement amount is calculated by multiplying the average acquisition price of the treasury shares to be retired by the number of shares, and is based on their book value as of the date of the board resolution. The actual retirement schedule may change during consultations with the relevant authorities and others.

[email protected] Kang Jung-mo Reporter