Celltrion to cancel 100 billion KRW in treasury shares

Celltrion has resolved to cancel 544,299 shares worth approximately 100 billion KRW to enhance shareholder value. This move is part of the company’s mid-to-long-term shareholder return policy, which aims to return one-third (approximately 33%) of annual consolidated net profit through share cancellations or cash dividends.

The cancellation is scheduled for September 30, with the updated listing expected to be finalized in October. This brings the total value of shares acquired and slated for cancellation this year to 200 billion KRW across two separate instances. By proceeding with the cancellation immediately after acquisition, the company aims to prevent any concerns regarding the potential resale of these shares and to increase market predictability.

Celltrion’s strategy involves a flexible approach, utilizing share buybacks and cancellations when the stock is perceived as undervalued, while employing cash dividends when cash returns are deemed necessary. The company’s ability to implement these returns is supported by strong financial performance, including record revenues and operating profits in the previous year and continued growth in the first half of this year.