Share retirement: sometimes, companies do this

Share retirement: sometimes, companies do this when they feel that their stock is undervalued on the open market. If the market is not efficient , the company's shares may be underpriced, and in that case a company can benefit its shareholders by buying back shares. In Hollund’s case, they stated they will retire (cancel) the shares. This means fewer shares will be listed on Hollund’s financial statement, and fewer shares will be available to the buying public. In theory, the fewer there is of an item, the more valuable it becomes, provided demand remains the same.

http://en.wikipedia.org/wiki/Treasury_stock