Yuyu Pharma Advances Shareholder Value Enhancement Policies Including 'Treasury Stock Acquisition'

"Efforts to Enhance Shareholder Value"

Yuyu Pharma is implementing various shareholder-friendly policies, including acquiring treasury shares, to enhance shareholder value.

Exterior view of Yuyu Pharma. Yuyu Pharma

On the 15th, Yuyu Pharma announced that it plans to repurchase approximately 7.4 billion KRW worth of convertible bonds (CB) out of the 24.5 billion KRW issued in 2023 by exercising the put option (call option) and will cancel all of them. In an era of high interest rates, the company utilized funds at zero interest for two years without interest expenses, effectively repaying the principal of the CB while significantly resolving the short-term overhang (large potential sell-off volume) issue.

Last week, Yuyu Pharma also disclosed that it is proceeding with the acquisition of treasury shares worth 2 billion KRW. The purchase will be conducted through on-market buying on the KOSPI market, with the planned acquisition quantity being 471,142 common shares. Yuyu Pharma currently holds about 850,000 common treasury shares, and upon completion of this acquisition, it will hold treasury shares equivalent to 7.8% of the total issued common shares.

Park Noyong, CEO of Yuyu Pharma, stated, "Considering various indicators such as PBR, we believe that Yuyu Pharma's current stock price is undervalued compared to the company's intrinsic value. Through exercising the convertible bond call option, we have significantly resolved the overhang issue, and we will continue to enhance shareholder value by implementing shareholder-friendly policies such as acquiring treasury shares."

Meanwhile, Yuyu Pharma has paid cash dividends for 29 consecutive years since 1994, and this year also paid a total dividend amount of approximately 2 billion KRW, with 100 KRW per common share and 120 KRW per preferred share as year-end cash dividends. Additionally, the company has continuously pursued shareholder-friendly policies, including a 1 billion KRW treasury share purchase in 2020, a 100% stock dividend in 2021, a 2 billion KRW treasury share purchase in 2022, and the cancellation of 200,000 treasury shares in 2023.