Samsung to announce a three-year buyback plan next week
Samsung is preparing to announce a three-year plan to buy back shares next week, reports The Korea Herald. The initiative can be considered an extension to the $10 billion buyback program it launched in 2015, which had a positive effect on its price per share.
Last year, the firm said it would spend 50 percent of its 22.4 trillion won ($19 billion) net profit to increase its share value and return the benefits to its investors—and that’s exactly what it did, paying out nearly 4 trillion won ($3.5 billion) worth of cash dividends and buying 7.2 trillion won ($6.3 billion) worth of shares back.
To keep the ratio the same as last year, Samsung has to spend 13 trillion won buying back shares by January
When Samsung reveals its three-year plan next week, alongside details surrounding its third-quarter profit and plans for cash dividends for 2018-2020, it’s expected to be on a much larger scale, in accordance with its record profit for 2017, with many market analysts expecting its net profit to cross the 40 trillion won ($35 billion) mark.Join the Discussion