Samsung Electronics Plans $59bn Share Buyback

 

Samsung Electronics plans a share buyback programme worth about 90 trillion ​won ($58.61 billion) after agreeing to give stock bonuses to employees in recent wage talks, Reuters reported on Wednesday, quoting ‌the Yonhap News Agency.

The plan has sent shares of the South Korean chip giant up more than 6%.

The memory-chip maker may soon announce details on the ​plan, Yonhap said, citing unidentified industry sources.

Management and the union ⁠last month reached a pay deal under which Samsung is ​expected to set aside about 10.5% of its annual operating profit for special ​bonuses for the chip division in the form of stocks, sparking concerns over inequality at the company.

Employees at Samsung will be able to immediately ​sell a third of the treasury shares they receive as ​bonuses, but they will have to wait for a year to sell another third ‌and ⁠a further year for the remainder.

Samsung also may need to repurchase additional stocks to award employees under a separate compensation programme, called the “Performance Stock Unit,” which was introduced last October to ​align employee rewards ​with long-term stock ⁠performance, Yonhap said.

 

READ ALSO: Alibaba Sues Pentagon Over Blacklist Designation

Samsung Electronics and SK Hynix are expected to post record profits this year and ​next year, as the AI boom has fueled ​a ⁠shortage of memory chips, with technology firms racing to build data centres, driving up prices for chips to train and run AI ⁠models.

Samsung ​shares jumped 6.3%, outperforming SK Hynix’s 1.6% ​gain and reclaiming the top spot by common-share market capitalisation in South Korea.

 

 

The post Samsung Electronics Plans $59bn Share Buyback appeared first on Channels Television.