Hyundai Motor Company, a leading South Korean automaker, has recently announced its plans to repurchase KRW1trn (US$717m) worth of its own shares over the next three months. This move is part of the company’s strategy to increase shareholder returns and enhance shareholder value. The board of directors has approved the buy-back of 4.66 million shares, which is equivalent to 1.7% of the company’s total outstanding shares.
The share repurchase will begin this week, with 70% of the repurchased shares set to be cancelled. The remaining KRW300bn worth of shares will be allocated to employees as compensation. This initiative is in line with Hyundai’s medium-term “value-up” plan, which was unveiled in August. As part of this plan, the company aims to repurchase around KRW4trn worth of its own shares over the next three years.
During the 2024 CEO Investor Day in August, Hyundai’s CEO Chang Jae hoon outlined the company’s goal of achieving a total shareholder return (TSR) of 35% or more over the next three years. By reducing the number of shares in circulation through the buy-back program, Hyundai aims to drive shareholder value and strengthen its position in the market.
This strategic move reflects Hyundai’s commitment to delivering value to its shareholders and employees. The company’s focus on enhancing shareholder returns and maximizing value for stakeholders underscores its dedication to long-term growth and sustainability in the automotive industry. Stay tuned for more updates on Hyundai’s initiatives and developments in the future.
