Samsung Cancels $2.11 Billion in Shares, Announces New Buyback
- Nyrah Gupta
- Mar 7
- 2 min read
Samsung Electronics’ decision to cancel 3.05 trillion won ($2.11 billion) worth of shares that it had previously acquired was announced in a company statement released on 18th February 2025. The move involves cancelling shares that Samsung had purchased from the open market through its buyback program.
Samsung also said in a separate regulatory filing it would acquire ₩2.7 trillion worth of its own common shares and ₩304 billion worth of other shares. These acquisitions are set to take place between February 19 and May 16 of this year to raise shareholder value and provide benefits to its employees through these transactions. According to the company’s statement, ₩500 billion will go towards employee bonuses, while ₩2.5 trillion will focus on stabilising stock prices and enhancing shareholder returns.
Samsung’s Buyback and Semiconductor Focus
The company revealed in November last year that it planned to buy back shares worth 10 trillion won over a one-year period. This move came after the company’s share price underperformed that of rivals such as SK Hynix. This marks the first time the tech giant had decided to buy back shares since 2017.
Apart from the financial steps, Samsung Electronics has nominated Jun Young-hyun, the head of its chip business, and Chief Technology Officer Song Jai-hyuk to join its board. This decision aligns with the company's strategy to strengthen its position in the semiconductor industry, which has been encountering difficulties.
References
"Samsung Electronics to Cancel $2.11 Billion Worth of Own Shares." Reuters, 18 Feb. 2025, https://www.reuters.com/technology/samsung-electronics-ca ncel-211-bln-worth-own-shares-2025-02-18/
Tak, Kirti. "Samsung Plans Massive Share Cancellation Worth $2.1B." TipRanks, 18 Feb. 2025, https://www.tipranks.com/news/samsung-plans-massive-shar e-cancellation-worth-2-1b
"Samsung Cancels $2.11 Billion of Its Own Shares, Announces New Board Members." Investing.com, 18 Feb. 2025, https://in.investing.com/news/stock-market-news/samsung-c ancels-211-billion-of-its-own-shares-announces-new-board-m embers-93CH-4670180
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