Korea Zinc takeover battle culminates in shareholders' meeting

YoungPoong

22/01/2025 22:00

SEOUL, Jan 23 (Reuters) - Korea Zinc  010130.KS  holds a
special shareholders' meeting on Thursday to elect new board
members that will cap a four-month takeover battle for the
world's top refined zinc producer.    
    A Seoul court on Tuesday rejected Korea Zinc's bid to
introduce a new voting scheme that would have improved the odds
of its own board nominees getting elected, leaving rival
candidates proposed by zinc producer Young Poong  000670.KS  and
private equity firm MBK Partners with a chance of gaining seats
on the board, analysts said. 
    Young Poong and MBK have been attempting to wrest control
away from Korea Zinc's current management, led by Chairman Yun
B. Choi, since September and have amassed a 40.97% stake in the
firm, according to a December regulatory filing. 
    Korea Zinc's Choi has an estimated 34.42% backing him,
according to local media.
    Young Poong and MBK have proposed 14 new candidates and
Korea Zinc's management has nominated seven. The firm currently
has 13 board members. 
    National Pension Service, South Korea's pension fund which
has a 4.5% stake in Korea Zinc as of October 2024, has said it
will pick three candidates each from either side. 
    The takeover battle has pitted members of Korea Zinc's two
founding families against each other. 
    Choi, a grandson of the company's co-founder, had 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, as well as underscoring Korea
Zinc's role in the global supply chain for materials outside
China. 
    MBK and Young Poong have said Korea Zinc's current board of
directors do not take into account shareholders' interests, and
vowed to improve governance at the zinc refiner.   
    Reactions have been divided. MBK and Young Poong have gained
the backing of proxy adviser ISS, while Choi has gained the
backing of proxy adviser Glass Lewis. 

 (Reporting by Joyce Lee; Editing by Miyoung Kim and Saad
Sayeed)
 ((joyce.lee@tr.com;))