Youngpoong CEO Kang Seong-du says, “We don’t sell to China.”
Korea Zinc “Youngpoong has accumulated deficit for 5 years”
Korea Zinc and Youngpoong, which have been in business together for 75 years, continued their fight for management rights on the 27th and entered into a battle of public opinion. Youngpoong, which launched a tender offer for Korea Zinc’s shares in conjunction with MBK Partners, a domestic private equity fund (PEF) management company, announced that “there is no artificial restructuring,” and Korea Zinc pointed out suspicions of breach of trust by Youngpoong advisor Jang Hyung-jin.
Youngpoong CEO Kang Seong-du held a press conference at the Korea Press Center in Jung-gu, Seoul on the 27th and said, “I personally met with the chairman of the Korean Metal Workers’ Union a few days ago and told him that he can rest assured that there will be no artificial restructuring.” He added, “If the tender offer is completed and I become a major shareholder, (the factory) “I will go down to Ulsan and personally promise you that what you are worried about will not happen,” he said.
President Kang’s remarks appear to have taken into account the collective opposition of Korea Zinc executives and employees. Korea Zinc’s labor union and key technical personnel are concerned that if it is acquired by MBK, the technology of Korea Zinc, the world’s No. 1 non-ferrous metal smelting company, will eventually be leaked overseas and a severe workforce restructuring will occur.
President Kang emphasized again, “As long as I and MBK Vice Chairman Kim Kwang-il exist in the company, we will not sell Korea Zinc to China.” Regarding MBK’s increase in the purchase price of Korea Zinc shares from 660,000 won to 750,000 won per share on the 26th, he said, “It is MBK’s responsibility, so I am not in a position to answer,” but added, “There are currently no plans for further increases.”
Korea Zinc issued a statement on this day, saying, “This is not the time for Youngpoong to hold a press conference as its two CEOs were arrested for violating the Serious Accident Punishment Act and the Seokpo Refinery is in danger of being shut down for 60 days. “This is a situation where we need to save seconds,” he argued. He also said, “Youngpoong borrowed 300 billion won from financial institutions to force MBK to raise the tender offer price, which ultimately led to a 2.7-fold increase in borrowings from financial institutions.” “The situation is not good, and we need to explain whether a decision in the nature of breach of trust was made under the personal instructions of Youngpoong Advisor Jang Hyung-jin.” Previously, on the 20th, Youngpoong Precision, an affiliate of Korea Zinc, filed a complaint against Advisor Jang and others to the Seoul Central District Prosecutors’ Office on charges of breach of trust.
Reporter Jaehee Han [email protected]
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2024-09-29 04:41:07