Korea Zinc to issue new shares for management defense

Korea Zinc Co. said Wednesday it will issue new shares in its stepped-up efforts to help fend off a takeover attempt by the coalition of its biggest shareholder and a private equity firm. Korea Zinc plans to issue 3,732,650 shares to raise 2.5 trillion won (US$1.8 billion) at 670,000 per share, with the subscriptions scheduled on Dec. 3-4, the company said in a regulatory filing. The company said it will assign 20 percent of the new shares for subscriptions by employees on Dec. 3. The move appears to be part of its efforts to secure more treasury stocks with voting rights in a battle over the control of the world's biggest refined zinc smelter with Young Poong Corp. and MBK Partners. Currently, the Young Poong side owns a 38.47 percent stake in Korea Zinc, while the smelter's Chairman Choi Yun-beom and related parties collectively hold 35.4 percent. Source: Yonhap News Agency