Samsung Electronics to cancel shares worth $4.4 billion

The move is part of a broader push aimed at enhancing shareholder’s value and can be attributed to Elliot Management’s pressure on the South Korean tech giant.

On Friday, Samsung Electronics Co Ltd disclosed it will be cancelling its shares worth $4.4 billion (4.9 trillion won).

The cancellation is expected to be completed by December 4. The move was the second stage of its previously announced plan to cancel all of its treasury shares in two stages to enhance shareholder value. The first stage was canceled in May 2017, said Samsung Electronics.

Last year, Samsung Electronics had managed to deflect pressure from U.S. activist hedge fund Elliott for a major overhaul of its complicated structure; as a compromise it accepted Elliot’s proposals to cancel its existing treasury shares by 2018.

The cancellation includes 450 million in common stock and 81 million in preferred stock, said Samsung Electronics in a regulatory filing.

Samsung Electronics shares were flat at 0101 GMT, in line with the wider market

In 2018, its shares have fallen by 15% midst signs of weakness in the prices of memory chips following a two-year boom.

“Samsung Electronics will continue to build a sustainable growth base by increasing competitiveness and to enhance shareholder value through active shareholder returns,” said Samsung Electronics in a statement.

($1 = 1,119.1800 won)

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