Sci-tech corporations Gradiant will cancel all treasury shares it holds. The amount equals about 16% of total shares outstanding, a step to boost shareholder value.
Gradiant said on the 16th that its board decided to cancel all about 2.25 million treasury shares it holds. The acquisition cost of the treasury shares to be canceled is about 33.1 billion won.
Gradiant plans to reduce the number of shares outstanding and strengthen its shareholder return policy through this cancellation. The company said it made this decision as part of carrying out the shareholder return policy presented when it acquired the treasury shares. A Gradiant official said, "We determined through board discussions that canceling all treasury shares at once aligns with the interests of all shareholders."
Since 2022, Gradiant has been buying back treasury shares totaling about 65 billion won. Recently, it signed a trust agreement to acquire treasury shares worth 3 billion won. The company plans to consider additional cancellations for treasury shares to be acquired in the future once the purchases are completed.
Once the cancellation of treasury shares is completed, Gradiant's total shares outstanding will decrease to 11,431,284. This cancellation will proceed as a profit cancellation, reducing only the number of shares outstanding without decreasing capital. As a result, per-share value and key financial indicators are expected to improve. The value of equity held by existing shareholders will also increase.
Gradiant also announced through a disclosure that it resolved to convene a shareholders meeting that day. It plans to put on the agenda a proposal to reduce the capital surplus at the meeting. If the capital surplus is reduced and transferred to retained earnings, it can be used as a tax-exempt source for dividends.
A Gradiant official noted, "Dividends funded by a reduction of capital surplus are tax-exempt, which will lead to an increase in shareholders' net dividends," adding, "If the agenda item is approved at this meeting, tax exemption can apply starting with dividends in 2027."
Gradiant's shareholders meeting will be held on the 31st.