The measure is part of a wider scheme to boost shartholder’s returns.
On Friday, in a development that marks its first share cancellation in fourteen years, Hyundai Motor stated it plans on canceling treasury shares worth $890 million (960 billion won) in order to boost shareholder returns.
The development comes in the wake of Elliott Management ramping up pressure on Hyundai Motor while calling for a holding company structure and a share cancellation, among other suggestions.
On Thursday, Hyundai also reported that its car sales in the U.S. and China have dropped significantly and as a results its quarterly profits have halved to its near six-year low.
In a statement the company said, it plans on canceling treasury shares worth 560 billion won by July 27; it will also buy back and cancel shares worth another 400 billion won.
This is its first share cancellation since 2004.
Following Hyundai’s statement, its shares reversed their earlier losses and rose by 3.2% before trading 0.6 percent higher as of 0135 GMT.
($1 = 1,076.4000 won)