South Korea’s Kumho Petrochemical Co. has decided to buy back its shares worth 100 billion won ($76.5 million) and retire them to enhance shareholder value.

The decision was made at a board meeting held on March 8 and a trust agreement for the purchase was signed, with the contract running from March 21 until Sept. 20, the company said on Tuesday.

The company also decided to pay a dividend of 5,400 won per common share and 5,450 won per preferred share, totaling 146.4 billion won. When combined with the amount spent on the share buyback, Kumho Petrochemical will have spent a total of 246.4 billion won this year.

“Despite the high level of uncertainty in the domestic and global business environment, Kumho Petrochemical continues to pursue an active shareholder return policy and we will remain committed to enhancing long-term shareholder value,” said Baek Jong-hoon, chief executive officer of Kumho Petrochemical.

In December, Kumho Petrochemical announced a plan to set aside 25 percent to 35 percent of its net profit as shareholder returns over the next 2 years to 3 years. Of that amount, 5 percent to 10 percent will be used for share buybacks and retirement and 20 percent to 25 percent for cash dividends.

This year’s share buyback and dividend payout account for 17.4 percent and 25.5 percent of last year’s net profit, respectively.

Kumho Petrochemical’s annual shareholder meeting is slated for March 24.

By Pulse

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