Mirae Asset Daewoo headquarters in central Seoul (Mirae Asset Daewoo)
South Korean brokerage firm Mirae Asset Daewoo said Thursday it plans to repurchase 15 million treasury stocks worth 113.4 billion won ($94.84 million) in an effort to boost shareholder value and stabilize its shares.
“Despite the well-balanced profit model and financial stability, the firm’s stock prices are undervalued,” said Jun Kyong-nam, head of business innovation division at Mirae Asset Daewoo.
“With the company’s ample liquidity, we’ve made such a decision to strengthen shareholder value as a mid- to long-term plan.”
Mirae Asset Daewoo stocks reached a 52-week high of 8,290 won on July 22. The shares, however, closed at 7,460 won on Thursday, down 100 won, or 1.32 percent, from the previous session’s close.
It is the company’s third buyback plan this year. In March and June, the company repurchased 13 million common shares worth 68.1 billion won and 16 million won shares worth 108.6 billion won, respectively.
The repurchase accounts for about 2.8 percent of the company’s total shares. The process will begin on Friday and continue through Oct. 30, the company said.
By Jie Ye-eun (email@example.com