LG Electronics has completed a share buyback worth 1 trillion won and plans to retire the acquired shares by the end of the year. The company also announced an interim dividend of 500 won per share, marking a significant step in its return to shareholders.
In accordance with the 1 trillion won share buyback plan announced in January, LG Electronics recently finalized a trust agreement with NH Investment & Securities and disclosed the termination of the contract on July 29.
The shares acquired through the trust agreement include 588,589 common shares and 141,840 preferred shares.
The repurchased shares are set to be fully retired this year to enhance shareholder value. The retirement process will reduce the number of shares in circulation, thereby improving key earnings metrics such as earnings per share (EPS) and book value per share (BPS).
This share buyback and retirement is part of LG Electronics' commitment to enhance corporate value, as outlined in a plan disclosed at the end of last year. The company has stated its intention to return a total of 2 trillion won to shareholders over the next two years, with an additional 1 trillion won in shareholder returns planned for next year.
On the same day, LG Electronics' board of directors approved the schedule for this year's interim dividend. The record date is set for August 13, with the payment date scheduled for August 28. The total dividend amount is approximately 89.7 billion won, with both common and preferred shares receiving 500 won each.
To ensure stable cash flow for shareholders and increase shareholder value, LG Electronics has set a minimum dividend of 1,000 won per share starting in 2024 and will continue to provide interim dividends.
* This article has been translated by AI.
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