Sun&L, a lifestyle beauty packaging company, said it completed the cancellation of 544,785 treasury shares on Tuesday to restore shareholder value and market confidence.
The canceled shares were common stock the company had previously acquired and held. Their book value as of the board resolution date stood at approximately 2.8 billion won ($1.88 million). The cancellation was carried out under the proviso of Article 343, Paragraph 1 of the Commercial Act, which allows a company to offset retained earnings against treasury shares on its books, reducing the number of shares in circulation without decreasing its statutory capital.
As a result, Sun&L's total issued shares fell from 12,607,989 before the cancellation to 12,063,204 afterward. The reduced share count is expected to be reflected in the market through a revised listing in early August.
The cancellation is the first concrete action taken under the corporate value enhancement plan the company disclosed last month. "This reflects our commitment to responsible management, with shareholder value as our top priority following the value-up disclosure," a company official said. "We will consistently raise corporate value through shareholder return policies going forward."
andy@heraldcorp.com
