Tongyang will retire 71.9 billion won worth of treasury shares and carry out a reverse stock split. The decision aims to boost corporate value by enhancing shareholder value.
Tongyang said it resolved at a board meeting on the 2nd to permanently cancel 24,439,999 common shares and 171,980 preferred shares it holds, totaling 24,611,979 treasury shares. The retirement is worth about 71.9 billion won at book value, or 10.26% of total shares outstanding.
In addition, Tongyang will pursue a 2-for-1 reverse stock split. A reverse stock split combines multiple shares into one to raise the par value per share. The company said it decided on the reverse split to streamline the number of shares outstanding and normalize the per-share trading price, easing perceptions of undervaluation and bolstering market confidence. The reverse split will be finalized at an extraordinary shareholders meeting on the 22nd.
A Tongyang official said, "This retirement of treasury shares reflects the company's strong commitment to enhancing shareholder value," adding, "With a permanent retirement exceeding 10% of total shares outstanding and a reverse stock split, we will increase the predictability of our capital policy and ensure that corporate value is properly assessed by the market."
Tongyang, an affiliate of Eugene Group, operates ready-mix concrete and building materials businesses. Recently, it has been promoting businesses such as artificial intelligence (AI) data centers and senior housing as new growth engines.