Samsung Electronics considering share buybacks: Korea Economic Daily
SEOUL – Samsung Electronics Co Ltd is considering buying back its own shares as part of a broader initiative by South Korean conglomerate Samsung Group to boost shareholder value, the Korea Economic Daily reported on Thursday.
The paper reported that chief financial officers of various Samsung Group firms met on Wednesday to discuss shareholder returns policies, without naming its sources. Samsung Electronics and other cash-rich companies were considering share buybacks as a primary option, it said without elaborating.
Samsung Electronics’ share price is down 3.6 percent so far this year, as the world’s top smartphone maker struggles to reverse sliding market share and margins in its handset business due to competition from cut-price Chinese manufacturers and Apple Inc’s latest iPhones at the upper-end.
The firm in January said it bought back 2.45 trillion won ($2.15 billion) in shares as part of a plan announced in late November 2014.
South Korea’s stock exchange has asked Samsung Electronics to comment on the report by 4.00am ET. The firm had no immediate comment. -Reuters