Cancellation set for Nov. 30
No reduction in capital
Hanjin has moved to cancel all of its treasury shares in a bid to enhance shareholder value and lift its corporate valuation.
Hanjin held a board meeting Tuesday and resolved to cancel 478,401 common shares of treasury stock, according to a disclosure filed with the Financial Supervisory Service's DART system. The cancellation is scheduled for Nov. 30.
The shares to be canceled represent Hanjin's entire treasury stock holdings, equivalent to 3.07 percent of its total issued shares. The cancellation is valued at approximately 19.99 billion won ($14.7 million) based on book value.
The cancellation will be carried out under Article 343, Paragraph 1 of the Commercial Act. No reduction in capital will occur; only the total number of issued shares will decrease, from 15,566,499 to 15,088,098.
Hanjin said the decision to cancel the treasury shares is intended to strengthen market confidence and deliver tangible improvements to shareholder value.
an@heraldcorp.com
