DongKuk Holdings of Dongkuk Steel said on the 11th that it has decided to cancel all of its treasury shares.
DongKuk Holdings held a board meeting that day and approved a plan to cancel treasury shares equal to 2.2% (698,940 shares) of its outstanding stock.
The par value per share of the canceled stock is 5,000 won, with the record date on Apr. 27 and the effective date on Apr. 28.
DongKuk Holdings plans to pursue a 2-to-1 capital reduction without consideration and a 5-to-1 stock split to enhance shareholder value from a mid- to long-term perspective after the treasury share cancellation.
DongKuk Holdings will push for the capital reduction without consideration in a way that does not reduce the number of shares or change total equity, lowering only the proportion of capital stock within net assets.
If the related procedures are carried out, the proportion of capital stock within net worth will improve from 41.1% (271.1 billion won) at the end of last year to 11.8% (77.8 billion won).
The company plans to use roughly 200 billion won, which had been tied up in the capital stock account, to strengthen capacity for dividends and expand investment capacity for new businesses.
The company plans to complete a regular shareholders meeting in Mar. and proceed with a change in listing at the end of May.
Also, although this capital reduction without consideration is a reallocation of capital with no change in total equity, DongKuk Holdings will carry out a 5-to-1 stock split in tandem, considering any potential impact on the share price.
At the same time, it plans to raise the minimum dividends standard from 300 won to 400 won.
DongKuk Holdings also announced its results for last year that day. Last year's operating profit on a consolidation basis was 39.5 billion won, down 32% from the previous year, and sales were 1.9853 trillion won, down 0.7%.