SEOUL : Shares of Korea Zinc slumped for a second straight session on Thursday, after a decision by the world’s top zinc refiner to issue new stocks.
Shares fell by as much as 23.2 per cent in Thursday’s morning trade, after hitting on Wednesday their daily lower limit with a drop of 29.9 per cent.
Korea Zinc said on Wednesday it planned to issue new stock worth about $1.8 billion, just two days after it bought back shares at a higher price, amid a battle between its co-founding families for a controlling stake.
Analysts criticised the decision as a move that could undervalue the interest of shareholders.
The country’s Financial Supervisory Service is scheduled to give a briefing later on Thursday on issues related to financial markets, including the takeover battle around Korea Zinc.
Earlier this month, the market watchdog launched a probe into recent tender offers made by the two sides, urging them to refrain from any unfair practices.
Korea Zinc shares traded down 15.1 per cent as of 0038 GMT.
