Shinsegae I&C Accelerates Shareholder Return Policy Overhaul, to Cancel Treasury Shares and Raise Dividends
IT DAILY ·
✦ AI Summary
Shinsegae I&C approved changes to its shareholder return policy at a board meeting on the 18th.
The revisions consist of canceling treasury shares, changing the basis for calculating dividend funds, and raising the minimum dividend.
The company plans to apply the changes to the 2026-2027 business years and review them again after the policy period ends.
Shinsegae I&C has revised its shareholder return policy ahead of schedule, earlier than originally planned. The company approved the changes to the policy at a board meeting on the 18th. The early overhaul consists of canceling treasury shares, changing the basis for calculating dividend funds, and raising the minimum dividend.
The company plans to cancel all of its roughly 840,000 treasury shares by 2027. The cancellation volume is 835,090 shares, with about 420,000 shares to be canceled in each of 2026 and 2027. The shares to be canceled were acquired through a treasury-share trust.
The planned cancellation volume accounts for about 6% of total shares outstanding. The cancellation is estimated at about KRW 6 billion based on book value. The company plans to cancel treasury shares acquired within the scope of distributable profits.
The company plans to change the standard for cash dividend funding to 20% of annual net income on a separate financial statement basis. It also plans to raise the minimum dividend per share from KRW 350 to KRW 400. Because the shares to be canceled were acquired within the scope of distributable profits, there will be no reduction in capital, and a rise in per-share value is expected as the total number of shares outstanding falls.
Shinsegae I&C changed the basis for calculating return funds from operating profit to 20% of annual net income on a separate financial statement basis, in an effort to make the scale of shareholder returns easier to gauge. The company said it was revising the calculation basis to improve the predictability of the size of shareholder returns.
The company raised the minimum dividend per share from KRW 350 to KRW 400. The increase is about 14%. In addition, even if the amount calculated under the return-fund basis comes to under KRW 400 per share, it will pay at least KRW 400.
The new shareholder return policy will apply for the 2026-2027 business years. The company plans to review it again after the policy period ends, taking the business environment into account.
A Shinsegae I&C official said the policy overhaul was designed to provide investors with clearer and more predictable return standards and to continuously enhance shareholder value. The official added that the company will continue working to balance growth and shareholder returns based on a stable financial structure and business competitiveness.
Source: IT DAILY · Yang Seung-gap
Original: https://www.itdaily.kr/news/articleView.html?idxno=241730
References
This article was produced with the help of an automated content generation algorithm.
Source: IT DAILY
View originalThis article was summarized and organized by BizCrush based on the original article from IT DAILY. For exact quotations and full details, please refer to the original article.