Aniplus to Buy Back KRW 2 Billion in Shares, Says It Will Keep Buying in Undervalued Periods
TECHWORLD ·
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Aniplus disclosed on the 29th that it had decided to buy back KRW 2 billion worth of its own shares.
The company decided to pursue share buybacks and additional purchases during undervalued periods, saying the current stock price is significantly undervalued on key indicators due to weak investor sentiment in the content market and a decline in the share price.
Aniplus is shifting its organizational and business structure through the absorption merger of Animax Broadcasting Korea, the forward deployment of a former CSO from Latel, the buildout of an online-offline fandom platform centered on Latel and global expansion, and the introduction of RSU.
Aniplus disclosed on the 29th that it had decided to buy back KRW 2 billion worth of its own shares. The company said investor sentiment in the content market has recently remained subdued. Aniplus's stock price has fallen about 35% from mid-August.
Aniplus judged its current stock price to be significantly undervalued based on key indicators such as price-to-earnings and enterprise value relative to cash generation. Accordingly, Aniplus decided to begin this share buyback. It also plans to keep buying during undervalued periods and said it will respond actively through share repurchases.
Aniplus is also pushing ahead with internal integration and business linkage efforts. In June, it absorbed Animax Broadcasting Korea. Then, from July, it reassigned Latel's former chief strategy officer (CSO) to Aniplus as CSO.
The company said these measures are accelerating business and organizational integration between the two firms. Aniplus said it began buying back shares because it judged the current stock price to be low on key metrics after the stock fell amid weaker investor sentiment in the content market, while at the same time accelerating internal integration and business linkages through the absorption merger with Animax Broadcasting Korea and the CSO appointment.
Aniplus said it is shifting its strategic direction. The company explained that it is moving away from a business structure centered on broadcasting and VOD distribution, instead focusing on Latel as the core and aiming to build an online-offline fandom platform encompassing OTT and commerce while also accelerating global expansion. The company said it views this as a signal of a companywide strategic shift.
The company also changed its compensation system in line with this shift in direction. It will use the acquired treasury shares for employee compensation and introduced a long-term restricted stock unit (RSU) program. The company said the program provides part of annual salary increases each year in shares subject to a lockup period.
The company said the purpose of the program is to strengthen key employees' sense of ownership and encourage contributions to the company's long-term growth. It added that the program is intended to create a structure in which the interests of the company, its employees and its shareholders are aligned.
Aniplus CEO Seung Taek said the company is preparing major changes across organization, business, partnerships and IR activities. He also said visible results are expected to begin within this year, and expressed his determination to reward shareholders who have waited through the undervalued period by improving corporate value.
Source: TECHWORLD · Lee Gwang-jae
Original: https://www.epnc.co.kr/news/articleView.html?idxno=407498
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Source: TECHWORLD
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