Samsung to release ‘money pack’ by quarterly dividends, self tender
Kim Min soo | minsu@ | 2017-04-25 09:55:29
Interest on initial run of KOSPI large capital stock
KRW 4 trillion dividends this year… KRW 7100 on weekly basis
Self tender in KRW 9.3 trillion
Financial sector “Selling trend recovery of wine”
Samsung Electronics is expected to pay quarterly dividends and buy back shares along with its 1 quarter results on April 27 which is attracting investors` attention.
In November last year, Samsung Electronics has announced that it would use 50% of its remaining cash flow for shareholder return by quarterly dividend and self tender purchases.
In the securities market, Samsung Electronics` quarterly dividend and self tender purchase are expected to be a big gift package for the Korean stock market, which has been in the lull due to the North Korean nuclear problem and the sale of foreign investors.
Samsung Electronics plans to pay a quarterly dividend of KRW 4 trillion, or KRW 1 trillion, in the first quarter of this year.
Samsung Electronics` quarterly dividend is the first of its kind in the KOSPI large-cap stocks which is now bigger interest. Securities market estimates that Samsung Electronics` dividend per share was KRW 28,500 per share last year, and dividend per share will be at least KRW 7,100 per share in the first quarter. The dividend for the quarter is expected to be available to shareholders listed in the shareholders` register at the end of March.
In addition, Samsung Electronics plans to purchase a secondary self tender stock after its earnings announcement. Samsung Electronics said it plans to purchase KRW 9.3 trillion worth of self tender stocks this year by adding KRW 850 billion in remaining funds to its shareholders in last year`s shareholders` revenues and KRW 800 billion in remaining funds in 2015. If Samsung Electronics buys or abolishes self tender stocks, the total number of shares will decrease, which will increase shareholder value.
Earlier, Samsung Electronics bought 1,275,000 shares of common stock and preferred stock through Samsung Securities and Hana Financial Investment Co., Ltd. from January 25 to April 10. The average acquisition price per share is KRW 1,929,217 and the total purchase cost is KRW 2.45 trillion. Samsung Electronics` ownership stake in the company stood at 13.95 %. Samsung Electronics is expected to purchase additional KRW 6.85 trillion worth of self tender stocks by the end of the year.
Samsung Electronics` shareholder return policy seems to be a stepping stone to securing the support of foreign shareholders. There is also concern that the quarterly dividend and self tender stock purchases may be used as a channel for foreign investors to gain profits, but analysts expect the situation is likely to be temporary.
Lee Jong-wook, a researcher at Samsung Securities, said, "Due to this shareholder return policy, foreigners will be able to make profits in the near term, but in the long run, they will focus more on improving operating profits."
Earlier, Samsung Electronics` foreign shareholders have been steadily demanding increased shareholder value, including increased dividends. US hedge fund Eliot sent a public letter to Samsung Electronics last year requesting for a cash dividend of KRW 30 trillion. Currently, Samsung Electronics owns more than 50% of foreign shareholders.
Securities companies are focusing on foreign investors buying back Samsung Electronics through quarterly dividends and self tender stocks.
Song Min-Sup, a researcher at Hi Investment & Securities, said, "Samsung Electronics is expected to pay at least KRW 7,000 per share at least as the quarterly dividend will not be lower than last year. This shareholder return policy has targeted certain foreign shareholders. It should be viewed as a reduction policy targeting all domestic and overseas shareholders."
By Kim Min soo minsu@
[ copyright ⓒ The Digitaltimes ]
KRW 4 trillion dividends this year… KRW 7100 on weekly basis
Self tender in KRW 9.3 trillion
Financial sector “Selling trend recovery of wine”
Samsung Electronics is expected to pay quarterly dividends and buy back shares along with its 1 quarter results on April 27 which is attracting investors` attention.
In November last year, Samsung Electronics has announced that it would use 50% of its remaining cash flow for shareholder return by quarterly dividend and self tender purchases.
In the securities market, Samsung Electronics` quarterly dividend and self tender purchase are expected to be a big gift package for the Korean stock market, which has been in the lull due to the North Korean nuclear problem and the sale of foreign investors.
Samsung Electronics plans to pay a quarterly dividend of KRW 4 trillion, or KRW 1 trillion, in the first quarter of this year.
Samsung Electronics` quarterly dividend is the first of its kind in the KOSPI large-cap stocks which is now bigger interest. Securities market estimates that Samsung Electronics` dividend per share was KRW 28,500 per share last year, and dividend per share will be at least KRW 7,100 per share in the first quarter. The dividend for the quarter is expected to be available to shareholders listed in the shareholders` register at the end of March.
In addition, Samsung Electronics plans to purchase a secondary self tender stock after its earnings announcement. Samsung Electronics said it plans to purchase KRW 9.3 trillion worth of self tender stocks this year by adding KRW 850 billion in remaining funds to its shareholders in last year`s shareholders` revenues and KRW 800 billion in remaining funds in 2015. If Samsung Electronics buys or abolishes self tender stocks, the total number of shares will decrease, which will increase shareholder value.
Earlier, Samsung Electronics bought 1,275,000 shares of common stock and preferred stock through Samsung Securities and Hana Financial Investment Co., Ltd. from January 25 to April 10. The average acquisition price per share is KRW 1,929,217 and the total purchase cost is KRW 2.45 trillion. Samsung Electronics` ownership stake in the company stood at 13.95 %. Samsung Electronics is expected to purchase additional KRW 6.85 trillion worth of self tender stocks by the end of the year.
Samsung Electronics` shareholder return policy seems to be a stepping stone to securing the support of foreign shareholders. There is also concern that the quarterly dividend and self tender stock purchases may be used as a channel for foreign investors to gain profits, but analysts expect the situation is likely to be temporary.
Lee Jong-wook, a researcher at Samsung Securities, said, "Due to this shareholder return policy, foreigners will be able to make profits in the near term, but in the long run, they will focus more on improving operating profits."
Earlier, Samsung Electronics` foreign shareholders have been steadily demanding increased shareholder value, including increased dividends. US hedge fund Eliot sent a public letter to Samsung Electronics last year requesting for a cash dividend of KRW 30 trillion. Currently, Samsung Electronics owns more than 50% of foreign shareholders.
Securities companies are focusing on foreign investors buying back Samsung Electronics through quarterly dividends and self tender stocks.
Song Min-Sup, a researcher at Hi Investment & Securities, said, "Samsung Electronics is expected to pay at least KRW 7,000 per share at least as the quarterly dividend will not be lower than last year. This shareholder return policy has targeted certain foreign shareholders. It should be viewed as a reduction policy targeting all domestic and overseas shareholders."
By Kim Min soo minsu@