[E-Daily Reporter Kim Hyung-il ] Bubang Co., Ltd.(014470), the parent company of CuChen—known for its rice cookers—will cancel additional treasury shares equivalent to approximately 5.9% of its total outstanding shares. Following a previous treasury share cancellation that pushed the stake held by its largest shareholder, Techros Holdings, above 50%, this additional cancellation is expected to further strengthen the controlling power of the largest shareholder.

On the 2nd, Bubang Co., Ltd. announced that it held a board of directors meeting and decided to cancel 3,383,159 common shares it had previously acquired. The estimated cost of the cancellation is 8.14118 billion won, and the cancellation is scheduled for the 9th.

The shares to be canceled represent 5.93% of the total issued shares of 57,049,640 prior to the cancellation. If the cancellation proceeds as scheduled, the total number of issued shares will decrease to 53,666,481. This cancellation involves the cancellation of previously acquired treasury stock within the scope of distributable profits in accordance with the Commercial Act; while the total number of issued shares will decrease, there will be no change in the company’s capital stock.

Bubang Co., Ltd. also retired 3,002,620 treasury shares last month. At that time, the total number of issued shares before the retirement was 60,052,260, and the largest shareholder, Techros Holdings, held 28,699,554 shares. Following the cancellation, Techros Holdings’ ownership stake rose from 47.79% to 50.31%.

The 3,383,159 shares targeted for this additional cancellation are also treasury shares held by Bubang Co., Ltd. Therefore, unless there is a change in the number of shares held by Techros Holdings, its ownership stake will rise further following this cancellation.

Bubang Co., Ltd. explained that the estimated amount for the cancellation is the book value as of the date of the board resolution, calculated by multiplying the number of treasury shares subject to cancellation by the average acquisition price. The scheduled cancellation date is subject to change depending on consultations with relevant authorities.

Previously, Bubang Co., Ltd. stated that the treasury stock cancellation was a measure aimed at enhancing shareholder value. At the time, market analysts assessed that the cancellation of treasury stock not only resulted in shareholder returns but also strengthened the controlling influence of Techros Holdings, the largest shareholder.