SEOUL: Samsung have a $2 billion (1.27 billion pounds) share buyback plan, following investor calls for higher returns against a setting of fast declining profits.
The world’s biggest smartphone manufacturer will buy back 1.65 million common shares and 250,000 preferred shares to become stable, its second largest buyback ever.
The buyback is the latest by a major Korean company. Hyundai Motor Corporation and affiliate Kia Motors following similar action this month, whose buyback plans were the same, aimed at enhancing shareholder value.
Samsung’s plan comes along with rising pressure for the tech giant to return more capital to shareholders as it heads for its worst annual profit in three years, . The move is also likely to settle shareholders after a year of declining shares.
Samsung shares are down 12.5 per cent in 2014, having recovered from multi year, compared with a 1.5 percent decline for the broader market.
Samsung held 66.95 trillion won in cash and equivalents at the end of the third quarter.
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