Korea Zinc withdraws plan to issue $1.8 bln of new shares (updated)

YoungPoong

13/11/2024 03:09

(Adds Korea Zinc comment and background starting in paragraph
2)
       SEOUL, Nov 13 (Reuters) - Korea Zinc said on Wednesday
it has decided to withdraw its plan to issue new shares worth
$1.8 billion after the proposal sparked an investigation by the
financial watchdog and a sell-off in its stock.
    The company said in a regulatory filing it has decided not
to pursue the share issue in view of continued concerns among
market investors and some shareholders.
    The move marks a setback to Korea Zinc Chairman Yun B. Choi,
who was seen backing the share issue plan to ward off a takeover
attempt by rival Young Poong and private equity firm MBK
Partners.  
        On Oct. 30, Korea Zinc announced a plan to issue new
shares equivalent to nearly 20% of its total shares just two
days after it bought back shares at a higher price.
    South Korea's financial market watchdog has launched an
investigation into whether Korea Zinc's decision to issue new
shares involves any unfair practice. The Financial Supervisory
Service (FSS) also put brakes on the plan by ordering the
company to revise it stock exchange filing on the share
issuance.  
    
    

 (Reporting by Jack Kim; Editing by Christopher Cushing and Kim
Coghill)
 ((jack.kim@thomsonreuters.com; +822 6936 1455;))