Categories: Wire Stories

DL E&C to Issue Bonus Shares as an Effort to Maximize Shareholder Value

– Bonus shares will be funded as part of utilizing company capital surplus of KRW3.3tn

– Plans to return 10% of Net Income in Cash dividend and 5% Share Buyback for next 3 years

– Actively expand CCUS and eco-friendly business

SEOUL, South Korea–(BUSINESS WIRE)–#BonusShares–On March 24, 2022, DL E&C (KRX: 375500) held a Board of Directors meeting and approved the issue of Bonus Equity shares to existing shareholders.

Maximize Shareholder Value through Bonus Issue

The proposed equity bonus will be issued at a ratio of 1:1. The number of newly issued stocks through this bonus share issue is 19,334,885 common stocks and 2,111,951 preferred stocks. When the bonus issue is completed, the total number of issued shares of DL E&C will increase from the current 21,472,623 to 42,919,459 stocks.

The date of issuance of new shares is April 8th, the date of allotment of new shares is April 11th, and the scheduled listing date is set for April 28th. The bonus issue will be financed by the company�s capital surplus of KRW3.271tn

A company official explained, “By increasing the total number of issued shares, we can hope to create a rebound in stock prices and reflect the core value of the company in future share prices.” He added, “The management’s decision to issue bonus shares reflects its intention to maximize shareholder’s value and profit”.

Uphold Mid to Long-term Shareholder Policy…Plans to Purchase Treasury Stock

Furthermore, in the general meeting held on the same day, DL E&C decided to pay a cash dividend of KRW2,700 per common stock (KRW2,750 for preferred stock). The total dividend payout is KRW58bn, which is 10% of the 2021 consolidated controlling shareholder’s net profit of KRW576.4bn.

In mid to long-term shareholder return policy initiated last year, DL E&C announced its plan to return 15% of annual net income to shareholders through cash dividend equal to 10% of net income and share buyback equal to 5% of net income.

The company official commented, “We are faithfully implementing our promised shareholder return policy and once the issuance of bonus equity share is completed, we will proceed to purchase treasury stock at an appropriate time.”

Promotion of New Eco-Friendly Businesses such as CCUS

DL E&C added CCUS and greenhouse gas emission rights-related business to the company’s articles of incorporation to secure new business growth potential and advance into an eco-friendly business.

In mid-March, DL E&C unveiled its plan to grow into a company that provides comprehensive solutions across the carbon capture, utilization and storage (CCUS) business value chain, which is viewed as the core of carbon neutrality. With leading technology and experience in the CCUS field, DL E&C hopes to expand its carbon business not only in Korea but also in the global market.

During the general meeting, DL E&C CEO Ma, Chang Min noted, “Although the pandemic situation that cast a deep shadow of uncertainty across the global economy continues, we will continue our efforts to not only grow our existing business but also strive towards change and innovation to improve future value.” He declared, “DL E&C, which was newly launched last year, will maximize shareholder value by firmly establishing a future growth engine centering on the new eco-friendly businesses. We will continue to seek ways to strengthen ESG management and eco-friendly business to secure growth drivers in the future and do our best to maximize shareholder value.”

Contacts

DL E&C Co., Ltd

David Cho

+82-2-2011-7192

david.cho@dlenc.co.kr

Alex

Recent Posts

JustMarkets Celebrates Key Milestones From 2024

HO CHI MINH CITY, VIETNAM - Media OutReach Newswire - 24 December 2024 - JustMarkets…

2 hours ago

Thailand Shines at ACES Awards 2024: Celebrating Leadership, Sustainability, and Innovation Across Industries

BANGKOK, THAILAND - Media OutReach Newswire - 24 December 2024 - The Asia Corporate Excellence…

2 hours ago

China Focus: Technology sows seeds of hope in combating desertification

HOHHOT, CHINA - Media OutReach Newswire - 23 December 2024 - China's National Forestry and…

12 hours ago

Novautek Honored with the “Outstanding SME ESG and Business Performance Award”

HONG KONG SAR - EQS Newswire - 23 December 2024 - Novautek Autonomous Driving Limited…

14 hours ago

V-GREEN and Xanh SM Indonesia sign MoU with Lippo for comprehensive green ecosystem in Indonesia

JAKARTA, INDONESIA - Media OutReach Newswire - 23 December 2024 - V-GREEN and PT Xanh…

14 hours ago

Molex Anticipates Steady Growth in High-Speed Connectivity in 2025, Driving Electronics Design Innovations Across Diverse Industry Sectors

Increase in opportunities predicted for high-speed optical transceivers and miniaturized connectivity solutions to address data-intensive…

16 hours ago