Court dismisses Young Poong's injunction in battle for control of Korea Zinc
Young Poong President Kang Seong-du speaks during a press conference in Jung District, Seoul, Sept. 27. Yonhap
A Seoul court on Wednesday dismissed an injunction requested by Young Poong in the intensifying battle for control of Korea Zinc, the world's largest zinc smelter, allowing the company's management to buy shares for its defense.
Young Poong, the biggest shareholder of Korea Zinc, along with its allied private equity firm MBK Partners, has been acquiring shares of the smelter through a tender offer to seize control of the zinc producer.
Korea Zinc was co-founded in 1974 by Chang Byung-hee and Choi Ki-ho and has been stably managed for decades by the Choi family. However, a battle for control erupted between the two sides after current Chairman Choi Yun-beom, who took office in 2022, sought to separate the company from Young Poong.
Blaming the firm's current financial weakness on its leadership, Young Poong and MBK launched a tender offer to buy Korea Zinc shares from Sept. 13 to Oct. 4 and filed for a court injunction to prevent the smelter from acquiring its shares during this period.
Korea Zinc has labeled the move a "hostile takeover," and has pledged to make all-out efforts to thwart it.
On Wednesday, the Seoul Central District Court rejected Young Poong's request for an injunction, a decision that allows Korea Zinc to purchase company shares for defense. (Yonhap)