Tech giant Samsung Electronics Co Ltd on Thursday unveiled a 11.3 trillion won ($9.9 billion) share buyback after reporting its first on-year profit growth in two years thanks to strong component sale
Tech giant Samsung Electronics Co Ltd on Thursday unveiled a 11.3 trillion won ($9.9 billion) share buyback after reporting its first on-year profit growth in two years thanks to strong component sales, pushing its shares sharply higher.
Samsung said it would cancel all shares purchased through the buyback, its biggest to date, and planned to give shareholders 30 per cent to 50 per cent of its free cash flow over the next three years, primarily through dividends.
The buyback, to be carried out in phases over a year, will be welcome news for those investors who have been clamouring for bigger payouts from the world’s top smartphone maker, which has lost market share to rivals such as Apple Inc and Huawei Technologies Co Ltd. “Samsung’s core smartphone business is struggling, which means the shares would likely fall. The buyback helps defend the stock price,” said Chung Sun-sup, head of corporate analysis firm Chaebul.com. Cance-lling the purchased shar-es would also help the Lee family, founders of Sams-ung, boost their control of the conglomerate’s crown jewel.
