| 24. | Share Capital and Capital Surplus |
(a) Share capital as of December 31, 2016 and 2017 are as follows:
| 2016 | 2017 | |||||||
| (Share, in Won) | ||||||||
|
Authorized shares |
200,000,000 | 200,000,000 | ||||||
|
Par value |
￦ | 5,000 | 5,000 | |||||
|
Issued shares(*1) |
87,186,835 | 87,186,835 | ||||||
|
Shared capital(*2) |
￦ | 482,403,125,000 | 482,403,125,000 | |||||
| (*1) | As of December 31, 2017, total shares of ADRs of 36,840,292 outstanding in overseas stock market are equivalent to 9,210,073 of common stock. |
| (*2) | As of December 31, 2017, the difference between the ending balance of common stock and the par value of issued common stock is ￦46,469 million due to retirement of 9,293,790 treasury stocks. |
(b) The changes in issued common stock for the years ended December 31, 2016 and 2017 were as follows:
| 2016 | 2017 | |||||||||||||||||||||||
| Issued shares |
Treasury shares |
Number of outstanding shares |
Issued shares |
Treasury shares |
Number of outstanding shares |
|||||||||||||||||||
| (share) | ||||||||||||||||||||||||
|
Beginning |
87,186,835 | (7,191,187 | ) | 79,995,648 | 87,186,835 | (7,189,170 | ) | 79,997,665 | ||||||||||||||||
|
Disposal of treasury shares |
— | 2,017 | 2,017 | — | 1,939 | 1,939 | ||||||||||||||||||
|
Ending |
87,186,835 | (7,189,170 | ) | 79,997,665 | 87,186,835 | (7,187,231 | ) | 79,999,604 | ||||||||||||||||
(c) Capital surplus as of December 31, 2016 and 2017 are as follows:
| 2016 | 2017 | |||||||
| (in millions of Won) | ||||||||
|
Share premium |
￦ | 463,825 | 463,825 | |||||
|
Gain on disposal of treasury shares |
783,788 | 783,914 | ||||||
|
Other capital deficit |
159,634 | 174,282 | ||||||
|
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|
|
|
|||||
| ￦ | 1,407,247 | 1,422,021 | ||||||
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(d) During the year ended December 31, 2017, POSCO ENERGY CO., LTD., a subsidiary of the Company, issued redeemable convertible preferred shares which are classified as non-controlling interests in the consolidated financial statements. The details of redeemable convertible preferred shares as of December 31, 2017 are as follows:
|
Redeemable Convertible Preferred Shares |
||
| (Share, in Won) | ||
|
Issue date |
February 25, 2017 | |
|
Number of shares issued |
8,643,193 shares | |
|
Price per share |
￦28,346 | |
|
Voting rights |
No voting rights for 3 years from issue date | |
|
Dividend rights |
Comparative, Non-participating · Minimum dividend rate for 1~3 years: 3.98% · Minimum dividend rate after 4 years: Comparative rate + Issuance spread + 2% |
|
|
Details about Redemption |
Issuer can demand redemption of all or part of redeemable convertible preferred shares every year after the issue date, for a period of 10 years from the issue date. | |
|
Details about Conversion |
Stockholders of redeemable convertible preferred shares can convert them to common shares from 3 years after the issue date to the end of the redemption period (10 years). Conversion price is equal to issue price, which could be adjusted according to anti-dilution clause. | |
Redeemable convertible preferred stocks are classified as non-controlling interests in the consolidated financial statements since the issuer has a redemption right and can control the circumstances in which the entity can settle with a variable quantity of equity instruments.