Samsung shares jump on stock split announcement
Samsung Electronics shares rose on Wednesday after the company announced a 50:1 stock split as another step to enhance its shareholder value and broaden its investor base.
The measure was approved at its board meeting on Wednesday with Samsung saying that it will make its stock more accessible to a wider range of investors from this year.
“The split is also expected to add both liquidity and marketability to the company’s stock, which may contribute to enhancing corporate value in the long term,” the company said in a statement.
The news boosted Samsung shares 4.3 per cent to nearly Won2.6m on Wednesday morning in a little changed market. Its board also decided to return Won5.8tn, about 50 per cent of its free cash flow, as 2017 dividends to its shareholders, which is up 46 per cent from a year earlier.
The announcement came as the technology giant has projected an upbeat outlook for this year after reporting another record quarterly earnings on strong memory chip demand, defying concerns that the semiconductor industry may have topped out amid increasing output.
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