SK hynix Announces 40 Trillion Won Share Buyback Plan
Quick Look
South Korean chipmaker SK hynix Inc. plans to repurchase 24.07 million common shares valued at 40 trillion won ($28.7 billion) to boost shareholder value through stock cancellation, citing that the company's current stock price is undervalued.
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Why It Matters
SK hynix is a major global memory chip manufacturer based in South Korea. The company is utilizing a share buyback strategy to address what it perceives as an undervaluation of its equity.
SEOUL, Aug. 19 (Yonhap) -- SK hynix Inc. said Wednesday it will buy back 24.07 million common shares worth 40 trillion won (US$28.7 billion).
The share buyback is aimed at enhancing shareholder value through the cancellation of treasury stocks, the South Korean tech giant said in a regulatory filing.
The leading memory chipmaker said it decided on the share buyback after determining that its stock was undervalued relative to its intrinsic value.
Open Questions
- What is the specific timeline for the share buyback execution?
