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Samsung Electronics likely to increase treasury stock buybacks, especially for preferred shares
🇰🇷 South Korea /Economy & Trade

Samsung Electronics likely to increase treasury stock buybacks, especially for preferred shares

From Chosun Ilbo · () Korean

Translated from Korean, summarized and contextualized by DistantNews.

At a glance

Analysis Sources not specified New plan
  • DS Investment & Securities predicts Samsung Electronics will likely increase its treasury stock buybacks and retirements, especially for preferred shares.
  • This comes after Samsung announced a shareholder return policy of up to 110 trillion won this year, including a 30 trillion won interim dividend.
  • The brokerage suggests that while the total amount of retired treasury stock may seem small, the focus on preferred shares could help reduce the gap between common and preferred stock prices.

Samsung Electronics is expected to boost its treasury stock buybacks and retirements, with a particular focus on preferred shares, according to DS Investment & Securities. This strategic move could help narrow the price gap between common and preferred stock.

The brokerage firm's analysis follows Samsung's recent announcement of a substantial shareholder return policy, earmarking between 90 trillion and 110 trillion won for this year. A significant portion of this, 30 trillion won, was already distributed as an interim dividend in the third quarter.

While the overall volume of treasury stock retirement might not appear large, DS Investment & Securities highlights that the buyback and retirement of preferred shares are likely to increase. This targeted approach is seen as a key factor in addressing the disparity between the prices of Samsung's common and preferred shares.

DistantNews Editorial

Originally published by Chosun Ilbo in Korean. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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