Korea Zinc agrees to shareholder meeting to discuss Young Poong's board expansion proposal (updated)

YoungPoong

03/12/2024 10:00

(Adds details, background)
       SEOUL, Dec 3 (Reuters) - Korea Zinc  010130.KS  said on
Tuesday its board has decided to hold a special shareholders'
meeting on Jan. 23 to discuss the appointment of directors
proposed by stakeholders Young Poong  000670.KS  and private
equity firm MBK Partners amid an escalating fight for control of
the company.
    Korea Zinc led by Chairman Yun B. Choi seeks to retain
management control of the world's top refined zinc producer in
the face of a takeover bid by Young Poong, a rival producer, and
its ally MBK. They are Korea Zinc's two biggest shareholders.
    Young Poong and MBK asked a court to require Korea Zinc to
hold a special shareholder meeting to discuss their request to
nominate 14 new directors to the firm, which now has 13 board
members, to represent more than half the board.
        The takeover battle pits members of Korea Zinc's two
founding families.        
    Chairman Choi, a grandson of the company's co-founder, has
taken a series of steps to try to thwart the takeover bid
including promising to give its board more independence by
making way for an outsider to become its chair.  
    Choi is also expected to nominate new independent directors
to woo investors, including the National Pension Service, which
holds a stake of more than 5% in the company, according to
analysts. 
    Choi and a group friendly to him hold about a 35% stake.
Young Poong and MBK have nearly 40% of the shares after a tender
offer.
    Korea Zinc shares jumped 20% on Monday on expectations that
the two sides will buy more stocks in the open market and rose
more than 9% on Tuesday.
    The country's financial watchdog is investigating Korea Zinc
over a now-scrapped share issue plan that triggered a backlash
from investors and governance experts.

 (Reporting by Jack Kim; Additional reporting by Hyunsu Yim;
Editing by Jacqueline Wong and Susan Fenton)
 ((Hyunsu.Yim@thomsonreuters.com;))