LG Electronics' stock is on the rise. This is interpreted as a result of the announcement of its second corporate value enhancement plan, which includes a plan to retire about 761,000 shares to enhance shareholder value.
As of 9:26 a.m. on the 18th, LG Electronics shares are trading at 90,700 won, up 3,999 won (4.49%) from the previous day. The amount of shares to be retired, approximately 761,000 shares, accounts for about 0.5% of LG Electronics' total issued shares.
As LG Electronics retires its shares as announced the previous day, a decrease in the total number of issued shares can be expected to lead to an increase in earnings per share (EPS) and book value per share (BPS).
LG Electronics announced that it will utilize more than 25% of the consolidated net income for shareholder return, excluding one-time extraordinary gains, alongside the share buyback. Additionally, to enhance predictability for investors, it stated that starting this year, the dividend amount would be set at a minimum of 1,000 won, with semi-annual dividends to be implemented.