Global IP content company SAMG Entertainment (CEO Kim Suhoon, hereinafter referred to as SAMG Entertainment) announced on March 3 that it will conduct a large-scale stock cancellation worth 9 billion won as part of its efforts to enhance shareholder value and implement responsible management.
On this day, SAMG Entertainment held a board meeting and disclosed that it has decided to cancel the entire 376,206 shares (worth 9 billion won) obtained through the exercise of call options on convertible bonds (CB). This amount represents a significant volume, equivalent to 3.83% of the company’s current total outstanding shares (9,824,515 shares).
This stock cancellation is interpreted as a preemptive measure to eliminate potential overhang risk in the market. In particular, even though the conversion price of the convertible bonds to be cancelled (23,923 won) is lower than the current market price, SAMG Entertainment chose to cancel the entire amount instead of securing additional funds through reissuance. The company explained that this decision reflects the management's strong commitment to protecting the value of existing shareholders’ stakes and strengthening the stability of its capital structure.
Through this cancellation, SAMG Entertainment has optimized its capital structure and resolved supply and demand uncertainties. The company plans to proactively manage both internal and external volatility, create an environment where investors can invest with confidence for the long term, and establish a virtuous cycle structure in which the company’s actual performance is fully reflected in its stock price.
This decision stems from confidence in robust performance growth. Last month, SAMG Entertainment announced that it recorded consolidated revenue of approximately 141.2 billion won and operating profit of about 22.6 billion won last year, marking a successful turnaround to annual profitability.
Notably, the company raised its operating margin (OPM) to 16% within a year, demonstrating the strong profitability of its IP-based business. SAMG Entertainment’s strategy is to maximize shareholder benefits through genuine enhancement of corporate value, rather than relying on temporary stimulus measures, based on its solid financial soundness.
A SAMG Entertainment representative stated, “This stock cancellation is a sincere promise to our shareholders,” adding, “We will continue to enhance our corporate value by expanding our global IP business and consistently delivering results.”
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