Shinyoung Securities 1trillion-won treasury share cancellation and impact of the Government Employees Pension Service letter
The Government Employees Pension Service sent an investor letter in 6 month on 5 day asking companies that do not cancel treasury shares to explain why. During the same period, Shinyoung Securities decided to cancel treasury shares worth 1 trillion won, while K Auction decided to cancel shares worth 80 hundred million won, and the management of Pharos iBio and Hyundai E&C disclosed treasury share purchases.
The Government Employees Pension Service sent an investor letter in 6 month on 5 day asking companies that do not cancel treasury shares to disclose their reasons. The letter requested explanations of shareholder-return policies and whether there were plans for cancellations. The institution stated that the purpose was to confirm the companies’ direction on shareholder returns.
Shinyoung Securities disclosed that it had decided in 6 month on 4 day to cancel treasury shares worth 1 trillion won. The disclosure stated that the purpose of the cancellation was to strengthen shareholder returns. The company said it would disclose the number of shares subject to cancellation and the specific schedule later.
After Shinyoung Securities announced the cancellation, its share price surged on 6 month on 5 day. It showed strength during intraday trading. Investor attention was concentrated on the stock.
K Auction 6month 4day 80announced that it had decided to cancel treasury shares worth hundred million won. The company said the purpose of the cancellation was to enhance shareholder value. It decided to disclose the cancellation method and schedule separately.
The CEO of Pharos iBio 6month 4day announced that they had purchased treasury shares. The company explained that the CEO’s purchase represented responsible management. The number of shares held after the purchase was disclosed in the filing.
Hyundai Engineering & Construction’s management announced that it would also proceed with the purchase of treasury shares in the 2quarter, 6month 4day. The company said the move was aimed at strengthening responsible management. The specific purchase volume and schedule were presented in the filing.