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Korea Zinc to cancel 1.8 trillion won of own shares

Published: 08 May. 2025, 21:32

Korea Zinc holds a board of directors' meeting to discuss ways to resolve its allegations over fraudulent trading practices related to a share issuance plan on Nov. 13, 2024, in central Seoul. [YONHAP]

Korea Zinc, the world's biggest refined zinc smelter, said Thursday that it plans to cancel more than 2 million of its own shares valued at 1.82 trillion won ($1.29 billion) this year to boost their value.

The retirement of the 2.04 million treasury shares represents 9.85 percent of its stocks issued in total, it said.

The stock retirement will take place in three rounds each in June, September and December, it added.

Korea Zinc bought back 2.08 million of its own shares last year to defend against a takeover threat from an alliance between its majority shareholder, Young Poong, and private equity ally MBK Partners.

In March, the chief of Korea Zinc managed to keep his position and control of the company board at this year's shareholder meeting after a Seoul court limited its majority shareholder's voting rights for new board members.

The management tussle began on Sept. 11 when the Young Poong camp launched a tender offer for an additional stake in the zinc smelter.

In response, Korea Zinc, with the support of Bain Capital, conducted a massive stock buyback.

Yonhap