South Korea market watchdog looking into Korea Zinc's share issuance plan (updated)

YoungPoong

31/10/2024 08:09

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       SEOUL, Oct 31 (Reuters) - South Korea's financial market
watchdog said on Thursday it acknowledged concerns among
investors over a recent decision by Korea Zinc to issue new
shares and was looking into the plan to determine if it involved
any unfair practices. 
    "We will hold the company and related securities brokerage
accountable if any unfair trade or misconduct is found," Hahm
Yong-il, senior deputy governor of the Financial Supervisory
Service, told a briefing. 
    Hahm also said authorities could require Korea Zinc to
submit a revised plan for share issuance if there was any major
omission affecting investor decisions in the filing submitted on
Wednesday.     
        The world's top zinc refiner on Thursday announced a
plan to issue new stock worth about $1.8 billion, sending its
stocks plunging. The surprise move came just two days after it 
    bought back shares
     at a higher price and pledged to cancel all of them to help
enhance shareholder value.
  
        Korea Zinc, which had borrowed heavily to buy back $1.5
billion of its shares at a premium price to help ward off the
takeover attempt from its biggest shareholder Young Poong and
partner MBK, said most of the proceeds from the new share
issuance would be used to repay debt. 
  
        Run by the Choi family, Korea Zinc has been in a bitter 
    fight to control
     the $18 billion zinc empire with the co-founding Chang
family, whose conglomerate Young Poong  000670.KS  made an
initial joint offer with private equity firm MBK Partners in
September.    
  

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