KT&G Announces 1.04M Shares Bought by U.S.-Based Capital Group, Raising Stake to 8.2%
Stake continues to rise from 5.61% in May to 7.21% in June and 8.22% in July, KT&G posts strong first-quarter growth driven by overseas cigarette business; new shareholder return policy to be announced in H2
On July 3, 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 an 8.22% stake in the company for investment purposes.
According to a filing on Korea’s electronic disclosure system, Capital Group reported that it holds approximately 8.528 million shares of KT&G, representing 8.22% of the company’s outstanding shares.
Capital Group initially disclosed on May 8 that it had acquired a 5.61% stake in KT&G, and subsequently reported on June 9 that it had increased its stake to 7.21%. In its latest filing, Capital Group disclosed the acquisition of approximately 1.04 million additional shares, bringing its ownership stake to 8.22%.
Capital Group is one of the world’s largest active investment management firms, overseeing approximately USD 3.3 trillion in assets, and is widely known for its long-term investment approach. Its continued accumulation of KT&G shares is also interpreted as reflecting this 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. 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 official said, “The steady increase in ownership by global asset companies with a strong long-term investment orientation, including Capital Group, demonstrates recognition of KT&G’s growth potential and fundamental competitiveness. We will continue working to enhance shareholder value by building a virtuous cycle in which earnings growth, led by our global business, supports stronger shareholder returns.”