Korea Zinc Chairman Choi Yoon-beom will hold an emergency board meeting on the 30th to discuss measures to defend management rights. It is expected that discussions will be held on how to respond to the convening of an extraordinary shareholders’ meeting requested by the Youngpoong/MBK Partners alliance. As fierce competition between the two sides was expected, expectations for a rise in stock prices also increased. On the 29th, Korea Zinc’s stock price rose 18.60% to close at 1.543 million won, despite being designated as an investment warning stock.
According to the business world on the 29th, Korea Zinc recently notified its directors that it will hold a board of directors meeting at 9 a.m. on the 30th at the headquarters of Gran Seoul, Jongno-gu, Seoul. The purpose of the convening was known to be ‘discussion of issues related to management rights disputes’. As the Youngpoong-MBK alliance requested to convene an extraordinary general meeting of shareholders to appoint new directors and introduce an executive officer system at Korea Zinc the previous day, whether to accept the request is expected to be a topic of discussion at the board of directors.
From the joint tender offer of Youngpoong and MBK Partners last month to the end of Korea Zinc’s share purchase on the 23rd of this month, both sides invested a huge amount of funds amounting to trillions of won over 40 days. However, neither party could secure a majority stake. Based on stocks with voting rights, Youngpoong’s side holds 38.47% and Chairman Choi’s side holds 35.4%, giving Youngpoong a lead of 3.07 percentage points. If an extraordinary general meeting of shareholders is held in this situation, Korea Zinc may be pushed out in the vote competition that will take place over the appointment of directors. For this reason, there is a high possibility that Korea Zinc will refuse to convene the board of directors itself.
It is known that Korea Zinc is also considering transferring about 1.4% of its shares to the Employee Stock Ownership Association in order to increase the proportion of stocks with voting rights. Korea Zinc held a treasury stock acquisition trust agreement in May, and the trust period ends on the 8th of next month. If this is handed over to the Employee Stock Ownership Association, voting rights can be restored.
Reporter Kim Jae-hyung [email protected]
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