Naver stock gains on buyback program

[Courtesy of Naver]

South Korean internet giant Naver Corp. saw its stock price soar Wednesday morning following an announcement of a share buyback plan on Tuesday.

Shares of Naver were trading at 188,400 won ($138.96) as of 10:10 a.m., up 0.46 percent from the previous session.

The gain comes after Naver announced Tuesday that it will buy back and cancel 1.64 million shares on November 7.

The shares to be repurchased are estimated at 305.3 billion won in value.

The buyback was part of Naver’s program to enhance shareholder value as announced in the first-quarter earnings call in May.

Naver announced an all-cash dividend equivalent to 15 to 30 percent of its average free cash flow (FCF) for the next three years.

The company also disclosed a plan to retire 3 percent of its existing 8 percent treasury shares over the next three years.