Capital Group, a US-based global asset manager, has expanded its holdings in KT&G (033780.KS) to above 7 percent after purchasing additional shares.
KT&G disclosed Monday that Capital Research and Management Company, an investment arm under Capital Group, holds about 7.49 million KT&G shares for simple investment purposes. As a result, Capital Group's stake rose to 7.21 percent.
Capital Group had disclosed in May this year that it acquired a 5.61 percent stake in KT&G, increasing its holdings by 1.6 percentage points in about a month. Capital Group is a global active manager overseeing about $3.3 trillion in assets and is regarded as an institution with a strong long-term investment orientation.
KT&G's major foreign shareholders currently include BlackRock, First Eagle and the Government of Singapore Investment Corporation (GIC), in addition to Capital Group.
KT&G's first-quarter revenue on a consolidated basis reached 1.7036 trillion won, with operating profit of 364.5 billion won, up 14.3 percent and 27.6 percent respectively from a year earlier, continuing a solid earnings trend.
In particular, the overseas cigarette business recorded its highest quarterly performance, driven by sales expansion across all regions, price increases and cost efficiencies. The business posted first-quarter revenue of 559.6 billion won, up 24.6 percent from the same period last year, while operating profit and sales volume rose 56.1 percent and 15.0 percent respectively.
Based on its global business growth, KT&G plans to unveil a new shareholder return policy, including expanded dividends, in the second half of the year. The company said the successive stake increases by global institutional investors with long-term investment orientations are a signal of its corporate competitiveness and growth potential.
