[Edaily Reporter SIN SOO-JUNG ] NamyangDairyProducts(003920)is canceling treasury stock worth approximately 22 billion won. Following an increased dividend and a share buyback last March, the company is now proceeding with the cancellation, continuing its shareholder return policy.

NamyangDairyProducts announced on the 15th that it held a board of directors meeting the previous day and decided to cancel 326,553 common shares and 108,851 preferred shares. The total number of shares to be canceled is 435,404, which were acquired through a trust agreement for the purchase of treasury stock signed last March.

This cancellation will be carried out as an “earnings cancellation,” in which treasury shares acquired using distributable earnings are eliminated. The company’s capital will remain unchanged, and only the number of issued shares will decrease.

Once the cancellation is complete, the number of outstanding common shares will decrease by 5.4%, from 6 million to 5,673,447. The number of outstanding preferred shares will also decrease by the same percentage, from 2 million to 1,891,149. The company expects that reducing the number of shares in circulation will help enhance per-share value and shareholder value.

NamyangDairyProducts is sequentially implementing measures this year to increase dividends, repurchase treasury stock, and cancel shares. Last March, the company announced a decision to increase dividends and repurchase 20 billion won worth of treasury stock, stating that the repurchased shares would, in principle, be canceled.

A NamyangDairyProducts official stated, “This treasury stock cancellation is part of our capital management activities aimed at enhancing shareholder value,” adding, “Based on stable business performance and financial soundness, we will continue shareholder return initiatives that increase corporate value and shareholder value.”