Cancellation of 2.47 Million Treasury Shares Amounting to 6.73%
Cumulative Treasury Share Cancellation Ratio 9.93%
Part of Corporate Value-Up Program... First Implementation in Cosmetics Industry
Kolmar Holdings, the holding company of the Kolmar Group, has decided to cancel treasury shares worth 20 billion KRW. Kolmar Holdings plans to enhance shareholder value through the cancellation of treasury shares.
On the 26th, Kolmar Holdings announced that it will cancel 2,473,261 shares, equivalent to 6.73% of its treasury shares. The par value per share is 500 KRW, and the total cancellation amount is approximately 19.988 billion KRW. As of this date, the cumulative treasury share cancellation ratio of Kolmar Holdings reaches 9.93%.
This treasury share cancellation was carried out as part of Kolmar Holdings' previously announced 'Value-Up Program.' On the same day, Kolmar Holdings disclosed through the electronic disclosure system a 'Corporate Value Enhancement Plan (Value-Up)' aimed at voluntary corporate value improvement and shareholder returns by companies.
The Corporate Value Enhancement Plan is part of the government’s corporate value-up program implemented to resolve the 'Korea Discount' (the undervaluation of the Korean stock market compared to global markets). It includes a diagnosis of the company’s current status and discloses shareholder value enhancement plans such as ▲shareholder return policies ▲capital management plans ▲asset and financial restructuring. Kolmar Holdings’ implementation of this treasury share cancellation is the third case among domestic listed companies and the first in the holding company and cosmetics industries.
For this Value-Up Program, Kolmar Holdings analyzed key financial and non-financial indicators and established mid- to long-term goals. According to the shareholder return policy announced in July last year, the company planned to return more than 50% of net income excluding non-recurring gains to shareholders. Additionally, it plans to use a certain portion of irregular one-time gains (non-recurring gains) for treasury share repurchases and cancellations, quarterly dividends, and other purposes.
The company also aims to raise compliance with key corporate governance indicators from the current 66.7% to 86.7%. To achieve this, it plans to modernize governance by involving foreign and institutional investors in the board of directors and proactively introduce the audit committee and internal transactions committee. Furthermore, to strengthen communication with shareholders, it will expand the provision of guidance materials and English disclosures for individual, overseas, and institutional investors, as well as increase regular meetings with institutional investors.
Kolmar Holdings plans to regularly disclose the progress of its corporate value enhancement plan and various issues to shareholders. A Kolmar Holdings representative stated, "Announcing the Value-Up Program as the first in the cosmetics industry will help restore trust in the domestic securities market and serve as a catalyst for listed companies overall. We will disclose the corporate value enhancement plan annually and transform into a company that acts, not just talks, for shareholders and others."
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