Samsung Electronics’ market cap to shrink 1.3 percent: report

By Korea Herald

Published : May 2, 2017 - 15:05

- Link copied

Samsung Electronics’ market capitalization as well as its portion of the nation’s major bourse will shrink 1.3 percent if the tech giant cancels about 49 trillion won ($43.3 billion) worth of treasury shares as planned.

“Canceling treasury shares leads to a decrease in (the number of) listed stocks,” said Choi Chang-kyu, a senior analyst at NH Investment and Securities in a report. “If Samsung Electronics completes the plan of canceling treasury shares, the firm’s portion on the Kospi, in terms of market value, will drop to 27.8 percent.”

(Yonhap)

The company currently holds 17,981,686 common shares, which account for 2.9 percent of outstanding common stock, and 3,229,693 preferred shares, or 15.9 percent of outstanding preferred stock, in treasury stock.

The total value of existing treasury shares stands at around 40 trillion won. Considering the huge amount, the company decided to cancel the shares in two stages to minimize impact on the financial market.

By Cho Chung-un (christory@heraldcorp.com)

Korea Herald
Korea Herald
Articles by Korea Herald

Samsung Electronics’ market cap to shrink 1.3 percent: report

More from Headlines