Celltrion decided to cancel even the treasury shares it had set aside to pay employee stock options and expanded the size of its treasury share cancellation to 9.11 million shares.
Celltrion disclosed on the 6th that it changed the agenda for its regular shareholders meeting to increase the size of the treasury share cancellation to about 9.11 million shares. Based on the previous day's closing price, the value is about 1.9268 trillion won.
Celltrion had initially put on the agenda for its 35th regular shareholders meeting the cancellation of about 6.11 million treasury shares, excluding the portion held for stock option compensation. At the time, it excluded about 3 million shares to be used for the exercise of stock options already granted to some employees.
However, by including this portion in the cancellation this time, the total cancellation increased to about 9.11 million shares. The company said it plans to issue new shares in the future to pay the stock options for employees.
The company explained that because it will cancel treasury shares first and then issue new shares, the total number of shares outstanding will not change significantly.
The 9.11 million shares to be canceled this time account for about 74% of all treasury shares held by Celltrion. The remaining about 3.23 million shares (26%) will be used to secure future growth drivers.
Celltrion said it expanded the cancellation size to enhance shareholder value amid heightened market volatility due to recent geopolitical risks. The company has continued shareholder-friendly policies by buying back and canceling treasury shares in 2024 and 2025 as well.
Along with this, the company decided to introduce mandatory systems including independent directors and cumulative voting, expand the number of outside directors elected separately, and hold electronic shareholders meetings at this shareholders meeting. The aim is to proactively reflect the intent of the amendments to the Commercial Act.
A Celltrion official said, "The decision to cancel 9.11 million shares, equivalent to 74% of our total treasury shares, follows the company's management policy of putting the protection of shareholder rights first amid an unstable market environment," adding, "We will continue to respond swiftly to market changes, strive to enhance shareholder value, and do our best to achieve this year's sales target of 5.3 trillion won."
Meanwhile, the shareholders meeting scheduled for the 24th will also table agenda items including partial amendments to the articles of incorporation, the appointment of directors, and approval of the financial statements, including a cash dividend (750 won per share). The proposal to appoint directors was also partially changed. In place of Kim Hyeong-gi, vice chairman and co-CEO of the Global Sales Division, who decided to step down for personal reasons, a proposal was put forward to appoint Shin Min-cheol, head of management at the Business Division and president, as an inside director. Some parts of the retained earnings disposition statement were also revised in line with procedures to secure surplus funds for the additional treasury share cancellation.