US Markets
Home›US Markets›M&A & Deals›SK hynix launches $28.6 billion buyback and plans shar…
SK hynix launches $28.6 billion buyback and plans share cancellation
The 40 trillion won program covers repurchases of up to 24.07 million shares, about 3.3% of outstanding stock, between Aug. 20 and Nov. 19.
SK hynix Inc. announced a 40 trillion won, or about $28.6 billion, share repurchase program to buy back and cancel as many as 24.07 million common shares between August 20 and November 19. The shares represent roughly 3.3% of outstanding stock, with the company stating it will cancel repurchased shares rather than hold them as treasury stock, according to Yahoo Finance.
The company said the move is part of its capital return commitment, aiming to return more than 50% of cumulative free cash flow generated from 2025 through 2027. SK hynix reported net cash of 69.4 trillion won at the end of the second quarter, with cash and short-term investments totaling 88 trillion won and debt of 18.6 trillion won, giving it capacity to fund the buyback alongside production expansion.
Yahoo Finance also noted that the buyback could mechanically lift earnings per share if profits remain unchanged, since a 3.3% reduction in share count would translate to about a 3.4% EPS increase. The program would additionally reverse dilution from SK hynix's July Nasdaq offering, which involved issuing 177.9 million ADSs, representing 17.79 million new common shares, and generating $26.51 billion in gross proceeds.
Operational performance cited by Yahoo Finance supported the buyback timing, including a 257% increase in second-quarter revenue and a 557% increase in operating profit, resulting in a 76% operating margin. The article also linked demand visibility to HBM4 mass shipments and long-term agreements with about 10 customers, while raising the risk that the same profit strength could be tied to favorable memory pricing conditions.
Latest closeNasdaq Comp. 26,729.16 ▼0.3%