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South Korea market guard dog checking out Korea Zinc's share issuance strategy

South Korea's financial market guard dog stated on Thursday it acknowledged concerns among financiers over a current decision by Korea Zinc to release new shares and was looking into the strategy to identify if it involved any unfair practices.

We will hold the business and related securities brokerage accountable if any unfair trade or misbehavior is discovered, Hahm Yong-il, senior deputy governor of the Financial Supervisory Service, told an instruction.

Hahm likewise said authorities could require Korea Zinc to send a modified plan for share issuance if there was any major omission impacting investor decisions in the filing sent on Wednesday.

The world's top zinc refiner on Thursday revealed a. strategy to issue new stock worth about $1.8 billion, sending its. stocks plunging. The surprise move came simply 2 days after it

bought back shares

at a greater rate and pledged to cancel all of them to help. improve investor worth.

Korea Zinc, which had obtained greatly to redeem $1.5. billion of its shares at a premium cost to help ward off the. takeover effort from its biggest investor Young Poong and. partner MBK, said most of the profits from the new share. issuance would be used to pay back financial obligation.

Run by the Choi family, Korea Zinc has been in a bitter

battle to control

the $18 billion zinc empire with the co-founding Chang. family, whose corporation Young Poong made an. preliminary joint offer with personal equity firm MBK Partners in. September.

(source: Reuters)