Celltrion Decides to Cancel Treasury Shares Worth 203.3 Billion KRW

Scheduled for Cancellation on the 25th of This Month

Incheon Songdo Celltrion Plant 2 Overview. / Incheon - Photo by Hyunmin Kim kimhyun81@

Celltrion announced on the 14th that it has decided to cancel approximately 1.1 million treasury shares to enhance shareholder value.

The treasury shares to be canceled this time are all the treasury shares acquired this year, totaling 1,101,379 shares. This represents about 11% of the total treasury shares held and corresponds to 0.5% of the total issued shares. Based on the closing price on the previous day (13th), the value is approximately KRW 203.3 billion.

Previously, on December 4th last year, Celltrion also decided at a board meeting to cancel 3,011,910 treasury shares, equivalent to 25% of the total treasury shares held at that time, worth about KRW 553.3 billion, and completed the cancellation in January this year.

Following the cancellation decision, Celltrion's total issued shares will decrease from 214,108,119 shares to 213,006,740 shares, with the scheduled cancellation date set for the 25th of this month. Additionally, all treasury shares purchased this year will also be canceled.

This cancellation was decided through a board resolution on the 14th as part of Celltrion's ongoing treasury share repurchase efforts to maximize shareholder value. As the total number of issued shares decreases through cancellation, the value of shares held by shareholders is expected to naturally increase.

Celltrion is known as a company that values communication with its shareholders. This treasury share cancellation reflects the opinions of shareholders gathered over time. Along with ongoing shareholder-friendly policies such as treasury share acquisition and dividend expansion, it is another exemplary case of enhancing shareholder value and achieving mutual growth based on communication.

Following the acquisition of treasury shares worth KRW 436 billion last year, Celltrion decided last month to purchase additional treasury shares worth about KRW 100 billion and is currently proceeding with the additional purchase. Including some purchases resolved last year, the total treasury shares acquired or being acquired on the market since January this year amount to approximately KRW 200 billion.

Furthermore, at the board meeting in December last year, Celltrion resolved to pay the largest-ever simultaneous cash and stock dividends, which will be approved at the regular shareholders' meeting on the 25th and subsequently paid. The cash dividend is KRW 750 per common share, totaling about KRW 153.8 billion, and the stock dividend is 0.05 shares per common share, totaling about 10.25 million shares.

As the company is growing rapidly, Celltrion plans to continue implementing various shareholder-friendly policies to return profits to investors, ensuring stock price stability and enhancing shareholder value.

A company representative stated, "Following the record sales of approximately KRW 3.5 trillion last year, the highest since our founding, we are accelerating growth with a target of KRW 5 trillion in sales this year. We will expand shareholder return policies in line with the company's rapid growth to continue mutual growth with shareholders, while making company-wide efforts to increase corporate value for our leap to becoming a global big pharma."