SEOUL : Korea Zinc said on Tuesday its board has decided to hold a special shareholders’ meeting on Jan. 23 to discuss the appointment of directors proposed by stakeholders Young Poong and private equity firm MBK Partners amid an escalating fight for control of the company.
Korea Zinc led by Chairman Yun B. Choi seeks to retain management control of the world’s top refined zinc producer in the face of a takeover bid by Young Poong, a rival producer, and its ally MBK. They are Korea Zinc’s two biggest shareholders.
Young Poong and MBK asked a court to require Korea Zinc to hold a special shareholder meeting to discuss their request to nominate 14 new directors to the firm, which now has 13 board members, to represent more than half the board.
The takeover battle pits members of Korea Zinc’s two founding families.
Chairman Choi, a grandson of the company’s co-founder, has taken a series of steps to try to thwart the takeover bid including promising to give its board more independence by making way for an outsider to become its chair.
Choi is also expected to nominate new independent directors to woo investors, including the National Pension Service, which holds a stake of more than 5 per cent in the company, according to analysts.
Choi and a group friendly to him hold about a 35 per cent stake. Young Poong and MBK have nearly 40 per cent of the shares after a tender offer.
Korea Zinc shares jumped 20 per cent on Monday on expectations that the two sides will buy more stocks in the open market and rose more than 9 per cent on Tuesday.
The country’s financial watchdog is investigating Korea Zinc over a now-scrapped share issue plan that triggered a backlash from investors and governance experts.
