Doosan will effectively cancel all of its treasury shares within this year.
Doosan said in a disclosure that on the 26th it held a board meeting and resolved to cancel all remaining treasury shares (2,568,528 shares) within this year, excluding 632,500 common shares of treasury stock needed to operate a restricted stock unit (RSU) program for employee compensation. This amounts to about 12.2% of total shares outstanding and, based on the closing price on the 25th (1,215,000 won), is valued at 3.1207 trillion won.
The move came a day after the third amendment to the Commercial Act, which mandates the cancellation of treasury shares, passed the National Assembly on the 25th. Doosan specified that the cancellation is aimed at strengthening shareholder returns and enhancing corporations value.
Doosan had shown its intent to cancel treasury shares even before the Commercial Act was amended, and the number of shares to be canceled has increased with this third amendment to the law. Last year, it planned to lower its treasury share holding ratio from 17.9% to 11.9% by 2027.