Today, Samsung Electronics announced that the company's Board of Directors has planned to cancel the current treasury shares held by the company.
Previously, Samsung had retained the treasury shares to utilize it as a financial resource when need the time demanded it. For instance, for M&A transactions and securing talented professionals. Now, thanks to the company's strong balance sheet and increased cash holdings, Samsung apparently doesn't need to hold treasury shares anymore. The current market value of treasury is more than 40 trillion won.
Samsung will cancel the shares in two stages so it doesn't affect the financial market much. In the first stage, it will cancel 50 percent of the shares, and the rest of the holdings will be cancelled after the Board gives approval next year.
This decision also shows that the Korean company plans to enhance sustainable long-term value for shareholders.
Besides this, Samsung Electronics has also posted its financial report for Q1 2017, revealing some good numbers. According to the report, the company has earned a profit of KRW 50.55 trillion ($8.7 billion) across all of its businesses.
However, revenues earned from its smartphone division have fallen compared to those in Q4 2016 due to a decrease in sales of flagship devices.
Anyway, the Q1 2017 still was the second-best quarter for Samsung ever, profit-wise. The main reason behind it is the increased sales in the semiconductor and display departments.
The company also is expecting to generate more profit from the recently launched Galaxy S8 and Galaxy S8 Plus.