Namyang Dairy Products retires W22b in treasury shares, pledges continued shareholder returns

Namyang Dairy Products retired treasury shares worth 22 billion won ($14.7 million), continuing its shareholder return program.

The company held a board meeting Tuesday and decided to cancel 326,553 common shares and 108,851 preferred shares of treasury stock. The shares targeted for retirement were acquired through a treasury share acquisition trust agreement signed in March.

The shares being retired are valued at approximately 22 billion won. The retirement will proceed as a profit-based cancellation — within the distributable profit limits under the Commercial Act — reducing only the number of shares outstanding without decreasing paid-in capital. The move is expected to boost per-share value and enhance shareholder value, the company said.

Once the retirement is complete, the number of common shares outstanding will fall from 6 million to 5,673,447, while preferred shares will decrease from 2 million to 1,891,149.

Namyang Dairy Products has been pursuing a shareholder return program this year encompassing dividends, treasury share buybacks and cancellations. In March, the company announced a dividend expansion and a 20 billion won treasury share buyback, stating it would in principle retire the repurchased shares. The company said the latest cancellation fulfills the shareholder return plan announced at that time.

"This treasury share retirement is part of our capital management efforts to enhance shareholder value," a company official said. "We will continue to pursue a range of shareholder return activities that raise corporate and shareholder value, underpinned by stable business performance and sound finances."