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Press Release
The company decided to repurchase 2.54 million shares in order to ensure the stability of its stock price going forward in the market.
The company will also review the budget of investment expenditure (CAPEX) for the year 2003.
SK Telecom announced the repurchase of 3% of its common stock in order to stabilize the market price of its stock, and a review of the investment expenditure budget(CAPEX) for the year 2003.
An SK Telecom official said on Jan. 24th "In order to get rid of possible investor anxiety caused by a reduction in the amount of cash dividends due to the budget increase of investment expenditure (CAPEX), for the year 2003, we plan to repurchase 3% of our common stock after getting the approval of this plan from SK Telecom’s Board of Directors.
In this stock buy-back plan, SK Telecom will repurchase about 2.54 million shares (Total number of shares issued: 84,695,035). The total purchase amount will be about 500 billion Korean won, provided the share price averages 200,000 won. The specific details of the stock buy-back plan, including the specific repurchasing periods and amounts, will be determined soon at a Board of Directors meeting.
At the same time, the company will closely review the 2003 budget of investment expenditures amounting to 2.49 trillion won, because some investors have great concerns about this being a larger portion of the budget than they expected.
During the investors’ conference call that took place on January 22nd, SK Telecom disclosed a budget for investment expenditures amounting to 2.49 trillion won (520 billion won for WCDMA equipment, 780 billion won for CDMA2000 1X network, etc.). During the conference call, investors pointed out that the budget was 1 trillion won larger than they expected.
SK Telecom’s plans for the stock buy-back and a budget review of investment expenditure is based on the company’s shareholder-centered management approach that was declared at the end of last year. In addition, the main purpose of this plan is to stabilize the market price of SK Telecom stock at an early stage by removing any impact from a steep drop of its stock price in the market. On January 23rd SK Telecom’s stock price dropped to the lowest price in the last 33 months.
On December 20th 2002, SK Telecom finalized the specific plans for the shareholder-centered management approach. These include the implementation of the stock buy-back, cash dividends at a level of 30% of surplus cash flow (FCF), and a change of dividend ratio (Dividend amount/ Net income) in the year 2002 by doubling the dividend ratio from 5% to 10%.
On January 6th SK Telecom repurchased 5% (4,457,653 shares) of its shares owned by KT and executed a cancellation of those shares.
An SK Telecom official said on Jan. 24th "In order to get rid of possible investor anxiety caused by a reduction in the amount of cash dividends due to the budget increase of investment expenditure (CAPEX), for the year 2003, we plan to repurchase 3% of our common stock after getting the approval of this plan from SK Telecom’s Board of Directors.
In this stock buy-back plan, SK Telecom will repurchase about 2.54 million shares (Total number of shares issued: 84,695,035). The total purchase amount will be about 500 billion Korean won, provided the share price averages 200,000 won. The specific details of the stock buy-back plan, including the specific repurchasing periods and amounts, will be determined soon at a Board of Directors meeting.
At the same time, the company will closely review the 2003 budget of investment expenditures amounting to 2.49 trillion won, because some investors have great concerns about this being a larger portion of the budget than they expected.
During the investors’ conference call that took place on January 22nd, SK Telecom disclosed a budget for investment expenditures amounting to 2.49 trillion won (520 billion won for WCDMA equipment, 780 billion won for CDMA2000 1X network, etc.). During the conference call, investors pointed out that the budget was 1 trillion won larger than they expected.
SK Telecom’s plans for the stock buy-back and a budget review of investment expenditure is based on the company’s shareholder-centered management approach that was declared at the end of last year. In addition, the main purpose of this plan is to stabilize the market price of SK Telecom stock at an early stage by removing any impact from a steep drop of its stock price in the market. On January 23rd SK Telecom’s stock price dropped to the lowest price in the last 33 months.
On December 20th 2002, SK Telecom finalized the specific plans for the shareholder-centered management approach. These include the implementation of the stock buy-back, cash dividends at a level of 30% of surplus cash flow (FCF), and a change of dividend ratio (Dividend amount/ Net income) in the year 2002 by doubling the dividend ratio from 5% to 10%.
On January 6th SK Telecom repurchased 5% (4,457,653 shares) of its shares owned by KT and executed a cancellation of those shares.