Celltrion has decided to burn all of its treasury shares after completing a buyback worth approximately 100 billion won, while its stock is showing a slight decline.
According to the Korea Exchange, as of 1:40 PM on the 16th, Celltrion's stock was trading at 177,200 won, down 300 won (0.17%) from the previous trading day.
On the same day, Celltrion announced in a public disclosure that its board of directors had decided to cancel 544,299 shares of treasury stock. The company stated that the purpose of the cancellation is to stabilize stock prices and enhance shareholder value.
The cancellation is scheduled for the 30th, with an estimated amount of 96,235,870,000 won. This amount is based on the accounting book value of the treasury shares as of the board resolution date.
The shares being canceled were part of a buyback in which Celltrion invested about 100 billion won from September 1 to 14, acquiring 544,299 common shares for a total of 99,999,989,000 won. The average purchase price per share was 183,722 won.
The company initially projected a buyback amount of 100 billion won. However, due to fluctuations in stock prices during the acquisition period, there was a discrepancy of less than one share between the projected and actual purchase amounts.
This cancellation will target treasury shares already acquired within the range of distributable profits. As a result, while the total number of shares issued by Celltrion will decrease, there will be no change in its capital.
Celltrion currently holds 1,131,226 treasury shares under Article 165-3 of the law, which accounts for 0.49% of its issued shares. In addition, it holds another 3,396,528 treasury shares outside of this regulation.
* This article has been translated by AI.
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