There was no Youngpoong vs Korea Zinc winner...Entering the second round of shareholders' meeting

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The tender offer between Youngpoong and Korea Zinc, which are in a management dispute, ended without determining the winner.

As neither side gained a clear majority stake, the dispute moved to a vote-gathering battle at the general shareholders' meeting.

Reporter Choi Ah-young reports.

[Reporter]
Korea Zinc disclosed the results of its tender offer of treasury stocks, which closed on the 23rd.

The company secured 9.85% of shares due to be incinerated and 1.41% through its ally Bain Capital.

This brings Korea Zinc's friendly stake to 35.4%, a 3 percentage point gap from Youngpoong and MBK's 38.47%.

After burning 9.85% of non-voting shares here, both sides are estimated to be in the low 40% range.

As no one won a clear majority in the unyielding "War of Tran," the second round was fought as a vote-gatherer.

Right now, Youngpoong and MBK requested the board of directors of Korea Zinc to appoint 14 new directors and convene an extraordinary general meeting of shareholders to introduce an executive officer system.

It seems to be an attempt to take control of the board of directors and push out Choi Yoon-beom, chairman of Korea Zinc.

However, the current board of directors of Korea Zinc is likely to be rejected as all 12 people except for Jang Hyung-jin, advisor to Young-poong Choi's side.

In this case, the court must apply for permission to convene a shareholders' meeting, which is expected to be held around the beginning of next year.

As a result, competition to buy on the market and secure friendly stakes to win the shareholders' vote is expected to intensify.

[Seo Ji-yong/Professor of Business Administration at Sangmyung University: Competition for voting rights with Youngpoong and MBK Partners has become inevitable, and depending on which side the National Pension Service (which has a stake in Korea Zinc) takes, it can significantly affect the management dispute....]

In addition, the fight for justification for securing management rights, such as outdoor public opinion and court disputes, is getting hotter.

As the management dispute entered the second round, Korea Zinc shares closed at KRW 10.3 million, up nearly 4%.

I'm YTN's Choi Ayoung.


Video Editing: Jung Kook-yoon

Design: Kim Jinho