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Korea Zinc withdraws strategy to issue $1.8 bln of brand-new shares

Korea Zinc stated on Wednesday it has actually chosen to withdraw its plan to provide new shares worth $ 1.8 billion after the proposition stimulated an examination by the monetary guard dog and a selloff in its stock.

The company stated in a regulative filing it has actually decided not to pursue the share concern in view of continued issues among market financiers and some investors.

The relocation marks a setback to Korea Zinc Chairman Yun B. Choi, who was seen backing the share problem strategy to ward off a takeover attempt by rival Young Poong and personal equity firm MBK Partners.

On Oct. 30, Korea Zinc revealed a plan to issue brand-new shares equivalent to nearly 20% of its overall shares simply 2 days after it redeemed shares at a higher price.

South Korea's monetary market watchdog has released an examination into whether Korea Zinc's decision to issue brand-new shares involves any unfair practice. The Financial Supervisory Service (FSS) also put brakes on the plan by purchasing the business to modify it stock market filing on the share issuance.

(source: Reuters)