Samsung Electronics has announced a $7.17 billion share buyback program to boost shareholder value. This is the first buyback since 2017 and comes after the company's shares plunged to a four-year low.
The buyback will involve repurchasing 50.14 million common shares and 6.91 million preferred shares over the next three months, i.e. from November 18, 2024, to February 17, 2025, with the remaining amount to be decided by the board of directors.
The repurchased shares will be canceled to enhance shareholder value. The remaining 7 trillion won will be repurchased based on decisions made by the board of directors.
This move is expected to help stabilize Samsung's share performance and address investor concerns following a disappointing quarterly profit.
Following the announcement, Samsung's shares rose by 7.2%, marking the biggest daily jump since March 2024.
Samsung posted a net income of $7.1 billion for the third quarter, with $2.8 billion in profit from its chip division. However, delays in NVIDIA's AI chip certification allowed competitors to gain an edge in high-bandwidth memory sales.
This buyback program is part of Samsung's strategy to address investor concerns and support its share performance in the long term.
Besides Samsung, several other companies have also announced share buyback programs recently.
Apple has a long history of conducting share buybacks . In May 2024, Apple Inc announced a $100 billion buyback program.
India's Tata Consultancy Services (TCS) announced a $2 billion share buyback program in October 2024.
In September this Year, Intel has also announced a $10 billion share buyback program. In early this month, Sony announced a $1 billion share buyback program. In August, LG Electronics announced a $500 million share buyback program.
Advertisements