Namyang Dairy is continuing its shareholder return policy by retiring treasury shares acquired earlier this year.
On July 15, Namyang Dairy announced that its board of directors decided on July 14 to retire 326,553 common shares and 108,851 preferred shares, totaling approximately 22 billion won.
This retirement will be conducted using a profit retirement method, which allows for the retirement of previously acquired treasury shares within the scope of distributable profits. As a result, the number of issued shares will decrease without reducing the capital, leading to an expected increase in actual per-share value. Once the retirement is completed, the number of common shares will decrease from 6 million to 5,673,447, and preferred shares will drop from 2 million to 1,891,149.
Namyang Dairy has been gradually implementing its shareholder return policy, following its decision in March to expand dividends and acquire 20 billion won in treasury shares. At that time, the company stated its intention to retire the acquired treasury shares as a principle.
Meanwhile, since transitioning to the Han & Company management system in January 2024, Namyang Dairy has been undergoing significant organizational restructuring. As a result, the company successfully returned to profitability in operating income for the first time in five years last year, and it has shown improvements in both revenue and profitability in the first quarter of this year. Recently, the company has also expanded its overseas business by visiting Vietnam and Mongolia as part of a presidential economic delegation, where it signed a memorandum of understanding with local distribution companies for export.
A Namyang Dairy representative stated, "This treasury share retirement is a decision aimed at maximizing shareholder value through capital management," adding, "We will continue to engage in return activities that enhance the rights of our shareholders based on stable management performance and financial soundness."
* This article has been translated by AI.
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