DL E&C plans to acquire 34.4 billion won worth of treasury stock (own stocks) to enhance shareholder value. This is part of its shareholder return policy, which includes a cash dividend of 10% of last year's net profit and using 15% for share buybacks.
According to the Financial Supervisory Service's electronic disclosure system on the 1st, DL E&C announced that it signed a trust contract for treasury stock acquisition of 690,917 common shares and 75,507 preferred shares with NH Investment & Securities.
The acquisition prices for common and preferred shares are 46,700 won and 23,300 won, respectively. The total contract amount is 34.4 billion won, comprising 32.3 billion won for common shares, 900 million won for preferred shares, and 1.2 billion won for convertible preferred shares.
DL E&C indicated that it would implement its shareholder return policy over three years from last year until next year. The main point is to return 25% of the previous year's consolidated net profit to shareholders. Specifically, it stated that it would pay out 10% of net profit as cash dividends and use 15% for share buybacks.
Earlier, DL E&C decided on cash dividends worth 23 billion won (540 won per common share and 590 won per preferred share) in March this year. This is about 10% of last year's consolidated net profit of 229.2 billion won.
The treasury stocks purchased this time also amount to approximately 15% (34.4 billion won) of last year's consolidated net profit, aligning with the shareholder return policy.
Among the top 10 construction companies, those that announced shareholder return policies include Samsung C&T, DL E&C, GS Engineering and Construction, and Hyundai E&C.
Samsung C&T noted that it would pay cash dividends of 2,600 won and 2,650 won for common and preferred shares, respectively, in February this year. This is an increase of 50 won each compared to the previous dividends. Samsung C&T also decided to retire about 930 billion won worth of its treasury stock in the same month.
GS Engineering and Construction resumed dividends for the first time in two years this year, deciding on a cash dividend of 300 won per common share. The dividend amounts to about 25.5 billion won.
Hyundai E&C also decided on cash dividends of 600 won per common share and 650 won per preferred share this year. The dividend totals about 67.5 billion won.