LCD panel maker AU Optronics Corp (AUO, 友達光電) yesterday introduced its first share capital reduction program and a NT$55.77 billion (US$1.94 billion) return distribution program in a three-year span starting this year.
The program’s aim is to improve shareholders’ long-term return on equity, the company said.
AUO shareholders this year are to receive a cash dividend of NT$3 per share, including NT$1 from last year’s earnings and NT$2 paid back by the company through a 20-percent share capital reduction plan.
The company expects share capital to fall to NT$76.99 billion after the program takes effect in June.
As a result, AUO’s payout ratio