Korea Zinc shares plunge for second day ahead of watchdog briefing

Korea Zinc

31/10/2024 24:02

SEOUL, Oct 31 (Reuters) - Shares of Korea Zinc
 010130.KS  slumped for a second straight session on Thursday,
after a decision by the world's top zinc refiner to issue new
stocks. 
    Shares fell by as much as 23.2% in Thursday's morning trade,
after hitting on Wednesday their daily lower limit with a drop
of 29.9%. 
    Korea Zinc said on Wednesday it planned to issue new stock
worth about $1.8 billion, just two days after it bought back
shares at a higher price, amid a battle between its co-founding
families for a controlling stake. 
    Analysts criticised the decision as a move that could
undervalue the interest of shareholders. 
    The country's Financial Supervisory Service is scheduled to
give a briefing later on Thursday on issues related to financial
markets, including the takeover battle around Korea Zinc. 
    Earlier this month, the market watchdog launched a probe
into recent tender offers made by the two sides, urging them to
refrain from any unfair practices. 
    Korea Zinc shares traded down 15.1% as of 0038 GMT. 

 (Reporting by Jihoon Lee
Editing by Ed Davies)
 ((jihoon.lee@thomsonreuters.com;))