Korea Zinc to hold board meeting for management defense

Korea Zinc Co. said Tuesday it will hold a board of directors meeting the following day to discuss ways to fend off a "hostile" takeover attempt by the coalition of its biggest shareholder and a private equity firm. Chairman Choi Yun-beom has asked the company's board members to attend the "emergency" meeting on Wednesday as Young Poong Corp. and MBK Partners plan to hold an extraordinary shareholders meeting to demand a fundamental change in the smelter, a company spokesperson said over the phone. In the board meeting, Korea Zinc is reportedly expected to discuss countermeasures against the Young Poong side's shareholders meeting and ways to increase its friendly shares in the battle over the control of the world's biggest refined zinc smelter. On Monday, the Young Poong camp said the shareholders meeting is for a fundamental change in Korea Zinc's board of directors and improved corporate governance. The date for the shareholders meeting is not set yet. In their tender offer earlier this month, Young Po ong and MBK secured a 5.34 percent stake in Korea Zinc, bringing their overall stake to 38.47 percent. Korea Zinc, together with Bain Capital, acquired an 11.26 percent stake in a buyback that ended last week, bringing their total stake to 35.4 percent. Korea Zinc plans to cancel a 9.85 percent stake to enhance shareholders value. The smelter expects its friendly shares, including the Choi family's, to reach over 40 percent after the planned cancellation, which is tantamount to the Young Poong side's estimated 42 percent. Korea Zinc said Monday it is considering securing more treasury stocks with voting rights and more friendly shares to fend off the Young Poong-MBK coalition Source: Yonhap News Agency