Capital Group raises stake in KT&G to 8.22%

KT&G said Thursday that US asset manager Capital Research and Management Company, known as Capital Group, has raised its stake in the company to 8.22% for investment purposes.

Capital Group now holds approximately 8.528 million shares of KT&G. The firm first disclosed a 5.61% stake on May 8, then raised it to 7.21% on June 9. It purchased an additional 1.04 million shares Thursday, bringing its holding to 8.22%.

Capital Group is one of the world's largest active fund managers, overseeing $3.3 trillion in assets and known for its long-term investment approach. The latest share purchase is consistent with that strategy.

KT&G posted consolidated sales of 1.7036 trillion won ($1.1 billion) and operating profit of 364.5 billion won in the first quarter, up 14.3 percent and 27.6 percent, respectively, from a year earlier. Its overseas cigarette business set a record for quarterly sales. The company plans to announce a new shareholder return policy in the second half of the year, centered on enhanced dividends.

"The expansion of shareholding by a global asset manager with a strong long-term investment orientation is recognition of our growth potential and fundamental competitiveness," a KT&G official said. "We will continue to focus on increasing shareholder value through profit growth driven by our global business."