Hyundai Motor, South Korea’s leading automotive firm, said Friday that it plans to repurchase 254.7 billion won ($227.2 million) worth of its shares in an effort to boost shareholder value and stabilize the value of its shares.
“Repurchased shares will be used to strengthen shareholder value in the mid- to long term as part of efforts made since 2014 (to deliver) improved shareholder value,” Hyundai said.
Last week Hyundai’s stock tumbled below 100,000 won per share for the first time in nine years, partly on reports that US authorities were reinvestigating Hyundai and Kia to determine whether recalls of 1.7 million vehicles in 2015 and 2017 were conducted properly. The recalls took place over faulty engines.
The latest buyback involves 2.7 million shares: 2,136,681 common stocks, 243,566 first-preferred stocks, 364,854 second-preferred stocks and 24,287 third-preferred stocks, according to the Data Analysis, Retrieval and Transfer System maintained by the Financial Supervisory Service.
That equates to 1 percent of the company’s total shares.
The repurchase will begin Dec. 3 and continue through the end of February, the company said.
Backed by its buyback plans, Hyundai’s value rose to 107,500 won per share on the local bourse as of Friday at 1:30 p.m., a 7.5 percent increase compared with the previous day.
By Kim Bo-gyung (firstname.lastname@example.org