Samsung Electronics Stock Jumps 9% on $72 Billion Shareholder Return Plan
TLDR
- Samsung Electronics is set to announce a shareholder return programme worth more than 100 trillion won ($72 billion)
- The plan will be approved at a board meeting before the end of August
- The programme will be funded by 50% of Samsung’s free cash flow
- Returns will focus mainly on cash dividends rather than buybacks, due to regulatory concerns
- The news follows SK Hynix’s 40 trillion won ($29 billion) buyback plan announced Wednesday
Samsung Electronics (005930) stock surged 9.49% on Thursday after media reports revealed the company is preparing a shareholder return programme worth more than 100 trillion won ($72 billion).
Samsung Electronics Co., Ltd., SMSD.L
The report, published by MoneyToday and citing industry sources, said Samsung plans to hold a board meeting before the end of August to formally approve the package.
If confirmed, it would rank among the largest shareholder return programmes ever announced by a South Korean company.
The programme is expected to be funded through 50% of the company’s free cash flow. Samsung flagged last month that its board was already discussing this year’s return plan, including the possibility of special dividends.
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