Taewoong Logistics (CEO Han Jae-dong), a comprehensive logistics service company, announced a plan to increase corporate value (value-up) on the 12th and revealed its shareholder value increase strategy and mid- to long-term growth strategy.
Taewoong Logistics presented a shareholder value enhancement plan based on the burn of treasury stocks, introduction of minimum dividends, and dividend expansion through this public notice. The company plans to burn about 1 million treasury stocks, which is about 2.6% of total issued stocks, sequentially over the next three years starting this year. Previously, the company only acquired treasury stocks, but through this burn plan, it intends to implement a more strengthened shareholder value enhancement strategy.
In addition, Taewoong Logistics introduced a minimum dividend and guaranteed shareholder returns. The company plans to set the minimum dividend at 100 won for the next three years and gradually increase it thereafter. Since 2021, Taewoong Logistics' cash dividend payout ratio has been steadily growing at 2.95% (2021), 5.97% (2022), and 11.03% (2023).
The company also announced its mid- to long-term business growth strategy. Taewoong Logistics’ growth strategy is threefold: ▲Expanding the U.S. corporation’s business by opening new local branches and establishing warehouses to actively respond to changes in the global supply chain flow; ▲Expanding the logistics business area through mergers and acquisitions (M&A) and securing differentiated competitiveness; ▲Expanding domestic ports and transportation bases and strengthening local sales based on overseas corporations.
Taewoong Logistics CEO Han Jae-dong said, “Based on the judgment that the stock price is absolutely undervalued, we will prioritize increasing shareholder value and announce and execute this value-up plan,” adding, “We will also secure differentiated competitiveness in the global logistics market through a mid- to long-term growth strategy.”
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