SEOUL: Hyundai Motor said on Wednesday it will buy back 1 trillion won ($716 million) worth of its own shares as part of efforts to boost shareholder value. In a buyback plan approved by the board of directors, Hyundai will repurchase 4.66 million shares worth 1 trillion won within a three-month period beginning Thursday, the company said in a regulatory filing.
They hold 1.7 percent of the company’s total listed shares. Hyundai said the buyback is aimed at increasing shareholder value, Yonhap News Agency reported. Reducing the number of shares in circulation increases earnings per share and in turn increases the stock price, thereby benefiting shareholders.
In August, Hyundai Motor announced a value-up plan to buy back 4 trillion won worth of its shares over the next three years. Meanwhile, Hyundai Motor’s global chief operating officer Jose Munoz, who has been tapped as the company’s next CEO, has managed his product portfolio in the US amid growing uncertainty under Donald Trump’s second administration. I have emphasized the importance of flexibility.
Munoz was appointed to serve as CEO of the automaker starting next year as part of a larger executive appointments at units within the Hyundai Motor Group. Among other affiliates, Kia, the country’s second-largest automaker, promoted Choi Joon-young, currently vice president of the domestic production division, to president. Lee Kyu Bok, logistics affiliate Hyundai Glovis Co. The vice president and CEO of the company were also promoted to president.
The appointment of the company’s first non-Korean CEO comes as Hyundai and its affiliate Kia prepare for a turbulent future in their US operations, especially as Trump’s transition team reportedly plans to push for electric vehicles (EVs). ) wants to get rid of the tax credit program. The Inflationary Reduction Act (IRA) was introduced under the current Biden administration.