Korea Zinc Jumps on Report of Vote to Decide Battle for Control

Wedoany.com Report-Dec 02,  Korea Zinc Co. soared by daily limit after a media report said the board will convene a meeting Tuesday to decide whether to hold a shareholder meeting next month to vote on a new slate of directors proposed by its biggest block of shareholders.

Shares of the world’s biggest zinc smelter surged as much as 30% on Monday to the highest level since Oct. 24. The gain came after Seoul Economic Daily reported the firm will hold an extraordinary meeting of shareholders on Jan. 23 to vote on the appointment of new board members recommended by Young Poong Corp, the largest shareholder, and private equity firm MBK Partners Ltd, as the consortium seeks to topple the current management led by company Chairman Yun B. Choi.

The schedule of the board meeting is not decided yet, a Korea Zinc spokesperson told Bloomberg News by phone, adding such information is not publicly disclosed.

The board meeting, requested by MBKP-Young Poong alliance, will likely bring an end to the months-long public spat for the control of one of the world’s biggest producers of metals required for green transition. The MBKP and Young Poong alliance secured a 39.83% stake in Korea Zinc after their hostile bid, while a share buyback by Korea Zinc gave Choi’s camp more than 34% control of the company. 

Young Poong jumped as much as 24% in early trading in Seoul before trimming the gain to 10%. The benchmark Kospi index is up 0.4% at 9:59 a.m. Seoul time.