[Special Stock] Namyang Dairy Products' Stock Price Rises on Share Cancellation and Stock Split

On the 10th, Namyang Dairy Products' stock price rose sharply in the stock market. This is interpreted as the stock price rebounding after about two months of adjustment following the announcement of shareholder return measures such as treasury stock cancellation the previous day.

As of 9:16 a.m. on the same day, Namyang Dairy Products was trading at 524,000 KRW, up 10.43% from the previous day's closing price. After the market opened, the price rose close to the 560,000 KRW level before slightly adjusting.

The preferred dividend stock Namyang Dairy Products Preferred also traded at 37,100 KRW, up 24.92%. It initially hit the upper limit price in early trading but then gave back some of the gains.

The day before, Namyang Dairy Products' board of directors decided to cancel treasury shares. They plan to cancel 42,690 shares of treasury stock (worth 23.1 billion KRW) on the 19th. Earlier, in June, they announced a plan to repurchase treasury shares worth 20 billion KRW.

Additionally, to increase the number of circulating shares, they decided to proceed with a stock split. After canceling treasury shares, the remaining 679,731 common shares with a face value of 5,000 KRW each will be split into 6,796,310 shares with a face value of 500 KRW each.

The stock split will be finalized at an extraordinary general meeting of shareholders in October, and the split shares are scheduled to be relisted in November.