Samsung Electronics Share Buyback Report
Samsung Electronics' shares rebounded sharply on Wednesday after Yonhap News reported that the company is preparing a massive share buyback programme estimated at nearly 90 trillion won (approximately $59 billion) to be executed over the next three years. The stock rose as much as 10% to 341,000 won by 01:27 GMT and was trading 6.6% higher at 330,500 won, reversing a decline of more than 12% recorded in the previous session amid a broader market sell‑off.
The proposed buyback could involve the acquisition of roughly 290 million shares, equivalent to about 5 % of Samsung’s outstanding common stock, in addition to the approximately 25 trillion won of treasury shares the company already holds. The additional purchases are intended to fund special management performance bonuses that will be paid partly in stock, as well as performance‑based stock awards for employees, reflecting Samsung’s increasing reliance on stock‑based incentives to retain talent amid strong demand for artificial‑intelligence and high‑bandwidth memory chips.
Yonhap estimated that the total treasury‑stock purchases required over the three‑year horizon could reach about 90 trillion won, on top of the existing holdings. Restrictions on the sale of a large portion of the awarded shares are expected to reduce the free‑float of the stock, creating a lock‑up effect that could further support the share price.
The company has not yet disclosed official details of the buyback plan, but is expected to announce them shortly.