SK hynix shares surge after 40 trillion won buyback and cancellation

SK hynix shares jumped after the company announced a 40.0434 trillion won ($28 billion) program to buy back and cancel 24.07 million common shares, the largest such action by a listed South Korean company. The move also renewed attention on actress Chun Won-joo, 86, who is said to have bought shares at around 20,000 won in 2011 and held them ever since. Based on a closing price of 1.73 million won, that would represent about 86 times the purchase price, or an estimated return of roughly 8,500%, although her exact purchase price and holdings are undisclosed. Analysts say the more significant change is SK hynix's decision to raise its shareholder-return benchmark from within 50% of cumulative free cash flow (cash generated after capital spending) for 2025 to 2027 to 50% or more. With cumulative free cash flow estimated at about 491 trillion won, the potential shareholder-return pool could exceed 245 trillion won. The company will buy the shares over three months, a move analysts expect to support the stock by reducing supply and providing rebound momentum.

The information on this website is generated using AI and we cannot guarantee its accuracy. Please use it as reference information only.