Korea Zinc took a breather.in a long-running management dispute

Korea Zinc to Continue Tender Purchase of Shares Until Day After Tomorrow
Yungpoong Precision Opposition Buying Closes...Stock Jumps 9.71%
Chairman Choi Yoon-beom's side, even if the tender offer is successful, a long-term war is inevitable.

[Anchor]
As the court repeatedly allowed Korea Zinc to buy back its own shares, Korea Zinc took a breather.

However, even if Korea Zinc's tender offer is successful the day after tomorrow (23rd), the management dispute with Youngpoong seems to be inevitable for a long time.

This is reporter Choi A-young.

[Reporter]
When the court's "dismissal" ruling came out, Korea Zinc and Youngpoong once again set the day.

Korea Zinc said Youngpoong and MBK disturbed the market and engaged in fraudulent fraudulent transactions with provisional injunction applications, adding that their tender offer was invalid at source,
Youngpoong
and MBK countered that the tender offer of Korea Zinc's treasury stock was a breach of trust that caused damage to the company, and that they would be held accountable through the main lawsuit.

The court's decision will allow Korea Zinc Chairman Choi Yoon-beom to continue the tender offer of treasury stocks with Bain Capital.

As a result, Korea Zinc's stock price once closed at 877,000 won, up more than 6% from its open purchase price of 890,000 won.Youngpoong Precision Co., Ltd., which holds a 1.85% stake in

Korea Zinc, also surged more than 9% on the closing day of the tender offer by Chairman Choi.

However, even if Chairman Choi succeeds in a tender offer of treasury stocks, the dispute with Youngpoong is expected to be a long-term battle.

Youngpoong and MBK hold 38.47% stake in Korea Zinc after tender offer on 14th.

The maximum stake that Chairman Choi can obtain after burning treasury stocks without voting rights is 2.5%, which is 36.49% combined with the existing stake.

As neither side can secure more than half of its stake, competition through in-house purchases and friendly stakes is inevitable.

In particular, which side of the National Pension Service, which has a 7.83% stake in Korea Zinc, will take the lead.

[Kim Tae-hyun / Chairman of the National Pension Service (last 18th / State audit): I don't think it's desirable for the National Pension Fund to be used to compete for management rights through hostile M&As, not to improve corporate and financial structures through friendly M&As.]

Youngpoong and MBK are expected to call an extraordinary shareholders' meeting soon to try to take control of the board of directors, so the dispute between the two sides is expected to lead to a vote-off at the general shareholders' meeting.

I'm YTN's Choi Ayoung.


Video editing: Jung Kook-yoon
Design: Kim Jin-ho