Celltrion announced on the 2nd that it has decided to burn company shares worth about 50 billion won. The shares to be burned this time total 268,385 shares purchased from the 24th of last month, with the burning scheduled to be completed on the 18th.
The decision to burn company shares aims to alleviate investor concerns over increasing uncertainties, including the resumption of short selling and U.S. tariff policies, and enhance shareholder value. Generally, when corporations buy back shares and then burn them, the total number of issued shares decreases, resulting in higher per-share value, making it a representative shareholder-friendly policy.
The company had previously decided to burn 1,101,379 shares worth about 204.9 billion won on the 14th of last month and completed the burning. So far this year, it has purchased company shares worth about 250 billion won and decided to burn company shares worth about 800 billion won. Last year, it completed the acquisition of company shares worth about 436 billion won and burned over 700 billion won worth of company shares.
Earlier, on the 25th of last month, at the regular shareholders' meeting, it also decided on the largest cash and stock simultaneous dividends in history. Cash dividends are set at 750 won per common share, totaling about 153.8 billion won, while stock dividends amount to approximately 10.25 million shares at a rate of 0.05 shares per common share. After approving the agenda for 'capital reserve reduction' at the shareholders' meeting, it also secured about 620 billion won for tax-exempt dividend funds. By converting the capital reserve into retained earnings for dividends, shareholders will not have to pay a 15.4% dividend income tax, thereby increasing their actual dividend income.
A Celltrion official noted, 'We quickly decided to burn all the company shares acquired last month as part of our commitment to enhancing shareholder value. We will continue to actively pursue a shareholder return policy to grow together with investors and accelerate our leap to becoming a global big pharma.'