Hyundai Motor will retire all of its treasury shares, excluding the quantity designated for employee compensation, to strengthen its shareholder return policy.
On the 26th, Hyundai Motor announced via public disclosure that it resolved at a board meeting to retire a total of 2,505,606 shares, comprising 1,291,274 common shares and 1,214,332 preferred shares. Based on the previous day's closing price, this amounts to 789.1 billion won. The scheduled retirement date is the 31st. After the retirement, the total number of issued shares will decrease to 200,246,649 common shares and 59,418,010 preferred shares.
The quantity approved for employee compensation at the shareholders' meeting last March was excluded from the retirement target. Hyundai Motor explained, "Treasury shares acquired within the scope of distributable profits will be retired through a board resolution; only the number of shares will decrease, with no reduction in capital."
Retired shares cannot be resold to the market, permanently reducing the number of circulating shares and thereby increasing the per-share value for remaining shareholders. Alongside dividends, this is considered a representative shareholder return measure.
As part of its shareholder return policy, Hyundai Motor will maintain a total shareholder return rate of 35% or higher and a minimum dividend of at least 10,000 won. Quarterly dividends of 2,500 won per quarter will also continue to ensure dividend stability. However, to improve communication with the market, the English name for the total shareholder return rate will be changed from TSR to TPR.
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