[News Today]
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The court has sided with Korea Zinc, which decided to conduct a tender offer for its own shares amid a management rights dispute.
The tender offer is scheduled to proceed until tomorrow as planned, but the management rights dispute is expected to continue for an extended period.
Reporter Jung Hye-in has the details.
◀ Report ▶
A request for an injunction to halt the tender offer process filed by the Youngpoong side against Korea Zinc Chairman Choi Yoon-beom has been dismissed.
The court judged that Korea Zinc’s repurchase of its own shares cannot be conclusively deemed an act of breach of duty or illegal activity.
Previously, when Korea Zinc attempted to buy back its shares at 890,000 won per share to maintain its stake, Youngpoong and MBK labeled it a breach of duty and requested the court to intervene.
Regarding the decision, the Youngpoong alliance released a statement declaring its intent to pursue a main lawsuit for damages and breach of duty.
Korea Zinc also issued a statement expressing its intention to secure voting rights as much as possible after completing the tender offer to prevent hostile takeovers, welcoming the decision.
On the 2nd, the court also dismissed Youngpoong’s request for an injunction to prohibit Chairman Choi from acquiring treasury shares.
Following the court’s dismissal news, Korea Zinc’s stock price surged.
The price rose to an all-time intraday high of 889,000 won, approaching Korea Zinc’s tender offer price of 890,000 won per share.
Korea Zinc plans to continue its tender offer for treasury shares, scheduled until the 23rd.
However, industry sources predict the management rights dispute between the two sides may extend over a long period.
As the gap in their stake percentages isn’t large, intense strategic maneuvers are expected until the extraordinary shareholders’ meeting.
A deciding factor may be the National Pension Service, which holds a 7.83% stake in Korea Zinc.
To increase its shareholding, the Youngpoong alliance plans to purchase shares on the market, while Korea Zinc is expected to try expanding its friendly stakes.
This is Jung Hye-in from MBC News.
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