Samsung Electronics Co. plans to announce a new shareholder return package on Friday that could be worth as much as 110 trillion won ($79 billion), according to a person familiar with the matter.
A board meeting is scheduled to take place around 4 p.m. local time, with an announcement of the details expected shortly later, the person said, asking not to be named discussing private information.
The size of the package is expected to range between 90 trillion won and 110 trillion won, making it one of the company's most significant capital-return initiatives, the person said. A Samsung representative declined to comment.
Chipmakers are seeking to appease investors who are clamoring for greater returns after memory makers benefited from frenzied global demand for AI-related semiconductors.
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SK Hynix Inc's 40 trillion won buyback plan has added pressure on Samsung to return more cash to shareholders, who point to the electronics giant's swelling reserves. Expectations of a sizable shareholder return program have buoyed Samsung's stock this week. On Friday, its shares fluctuated between gains and losses in early Seoul trading and were up around 1.5% as of 9:50 a.m. Samsung's preferred shares rose about 8% on the Korea Exchange.
Samsung's move provides a "meaningful cushion to the share price," said Jung In Yun, chief executive officer at Fibonacci Asset Management Global. "The market is likely to expect continued and potentially expanded shareholder returns, but in the near term, macro uncertainty is outweighing company-specific positives."
Investors are closely watching developments from the day's board meeting, which was reported earlier by the Nikkei. Attention is on how Samsung allocates the funds between dividends and share buybacks, as well as the time frame for carrying out the program, for clues on its cash flow outlook.
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"The real question is how much is incremental and how much comes through buybacks versus dividends," said Albert Yong, managing partner and chief investment officer at Petra Capital Management.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
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