Daewoo Engineering & Construction is proceeding with a treasury share cancellation worth approximately 32 billion won to enhance shareholder value.
Daewoo E&C announced on the 4th that its board of directors resolved to cancel 4.175 million treasury shares currently held by the company. Based on the previous day's closing price, the value is estimated at approximately 42 billion won, while based on the closing price on the 4th—when the stock market plunged significantly—it is estimated at approximately 32 billion won. The cancellation is scheduled for the 18th. The treasury shares, acquired within the scope of distributable profits, will be canceled in a manner that reduces only the total number of issued shares without decreasing capital stock.
Daewoo E&C explained that this treasury share cancellation is a measure to substantially increase stock value by reducing the number of shares in circulation and thereby improving earnings per share. The reduction in total issued shares is expected to boost per-share value, which in turn is anticipated to lead to improved shareholder value. The company noted this is a preemptive response aligned with institutional changes underway, including the government's "Corporate Value-up Program" and moves toward mandatory treasury share cancellation.
A Daewoo E&C official stated, "Building on the stable revenue base of our housing business, we are actively pursuing major civil engineering and plant projects including the Czech nuclear power plant, Gadeokdo New Airport, and Papua New Guinea LNG." The official added, "We will strengthen our foundation for sustainable growth by expanding our portfolio into future growth areas such as AI data centers and energy businesses including nuclear power."