Incross (CEO Son Yoon-jung), an integrated marketing specialist subsidiary of SK Networks, announced plans to cancel treasury shares to enhance corporate and shareholder value.
Incross announced through a public disclosure on the 18th that it plans to cancel 644,000 treasury shares. This represents approximately 5% of the total issued shares of 12.84 million and amounts to about 15.3 billion won based on an average acquisition price of 23,758 won. The company plans to enhance shareholder value by canceling the majority of its treasury shares, retaining only 1% for recruiting key talent and employee compensation. The cancellation process is expected to be completed within the first half of this year.
This measure is being taken as part of Incross's shareholder return policy. Previously, on the 9th of last month, Incross sought to improve the substantial value of shareholders by deciding on a cash dividend of 298 won per share, up 23.1% from the previous year, while maintaining a dividend payout ratio of 30%.
In addition, at the general shareholders' meeting scheduled for the 26th, a proposal to reduce capital reserves will be submitted to discuss the pursuit of tax-exempt reduced dividends. A company official explained, "Since the capital reserves contain a mix of taxable and non-taxable funds resulting from the succession of retained earnings from the merged entity, further review is required, but we plan to proactively proceed with the reduction process at the general shareholders' meeting."
Incross CEO Son Yoon-jung stated, “We decided to cancel treasury shares with the aim of increasing per-share value by reducing the total number of issued shares,” adding, “We will further strengthen trust with the market by reviewing various shareholder return policies based on stable future performance.”
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