Sol. Samsung Electronics said Friday it will buy back a combined 10 trillion won ($7.16 billion) worth of its shares over the next year following a recent slide in its share price. This step is being taken by the company as part of its efforts to enhance its shareholder value.
In the buyback plan approved by the board of directors, a combined 3 trillion won of shares will be bought back within three months starting Monday and continuing through Feb. 17, the company said in a statement.
As for the remaining 7 trillion won, the company will decide on how and when to use them with a view to enhancing shareholder value at subsequent board meetings, Yonhap news agency reported.
Samsung shares have fallen sharply in recent months, hitting 49,900 won on Thursday, the lowest since June 2020.
The decline comes amid disappointing earnings and a negative outlook for the global semiconductor industry under the incoming Donald Trump administration in the US.
Samsung said it is committed to delivering “sustainable shareholder value” and will work to enhance the “longterm value” of the company.
Previously, the Korean chip giant implemented a share buyback program in 2017, repurchasing 9.3 trillion won of shares and canceling half of the treasury stock to improve shareholder value.
Meanwhile, officials said Samsung and its largest labor union reached a preliminary agreement on a 5.1 percent wage increase, opening the way to end stalled pay talks involved in the weeklong strike.
The tech giant and the National Samsung Electronics Union, which represents 31,000 workers or about 24 percent of the company's workforce, have held several rounds of talks since January over pay increase rates and the vacation system.
The union demanded a 5.6 percent basic wage increase for all members, a guaranteed holiday on the union's foundation day and compensation for economic losses caused by the strike, while the company offered a 5.1 percent increase in wages.
—
– .
Image Credit: KhasKhabar.