KT&G Announces U.S.-Based Capital Group’s Increased Stake from 5.6% to 7.2%
Capital Group expands its holdings after initially acquiring a 5.61% stake on May 8aa, KT&G posts strong first-quarter growth driven by overseas cigarette business; new shareholder return policy to be announced in H2
On June 9, KT&G (CEO Bang Kyung-man) announced that Capital Research and Management Company (Capital Group), one of the world’s leading asset management firms, has acquired a 7.21% stake in the company for investment purposes.
According to a filing with Korea’s electronic disclosure system, Capital Group reported holding approximately 7.49 million shares of KT&G. As a result, the firm’s ownership stake now represents 7.21% of KT&G’s total outstanding shares.
Previously, on May 8, Capital Group disclosed that it had acquired a 5.61% stake in KT&G. Since that disclosure, the firm has increased its holdings to 7.21%. Capital Group is one of the world’s largest active investment managers, overseeing approximately USD 3.3 trillion in assets, and is widely known for its long-term investment approach.
KT&G reported strong first-quarter results on a consolidated basis, recording revenue of KRW 1.7036 trillion and operating profit of KRW 364.5 billion, representing year-on-year increases of 14.3% and 27.6%, respectively.
In particular, the company’s overseas cigarette business achieved record quarterly revenue, driven by strategic price increases based on brand competitiveness, reductions in manufacturing and selling expenses, and balanced volume growth across all global regions. First-quarter revenue from the overseas cigarette business reached KRW 559.6 billion, up 24.6% year-on-year. Operating profit increased 56.1% compared with the same period last year, while sales volume rose 15.0%, achieving what the company described as “triple growth” in revenue, profit, and volume.
KT&G, with its qualitative growth led by its global business operations, plans to announce a new shareholder return policy in the second half of the year, centered on enhanced dividend payments.
A KT&G representative stated, “Following BlackRock’s investment, Capital Group, and other global asset managers with strong long-term investment tendencies have continued to increase their holdings in KT&G, demonstrating confidence in the company’s fundamental competitiveness. We remain committed to enhancing shareholder value by creating a virtuous cycle of profit growth driven by our global business and expanded shareholder returns.”