U.S.-based investment manager Capital Research and Management Company increased its stake in South Korea’s KT&G to 8.22%, continuing a series of purchases that began in May and signaling growing confidence in the tobacco company’s international growth strategy. Capital Group now holds about 8.53 million shares, up from 7.21% in June and 5.61% in May, according to regulatory filings.
KT&G said the increased investment reflects recognition of its growth potential as the company continues to expand overseas, following record first-quarter international cigarette sales of 559.6 billion won ($363.7 million). The company reported first-quarter revenue of 1.7 trillion won ($1.1 billion), and operating profit of 364.5 billion won ($236.9 million), up 14.3% and 27.6%, respectively, from a year earlier, and said it plans to introduce a new shareholder return policy later this year.
