Korea Zinc to cancel $1.29 bil. worth of own shares to boost value
Korea Zinc is indicated on a floor directory board near its office in Seoul, April 23. Yonhap
Korea Zinc, the world's biggest refined zinc smelter, said Thursday that it plans to cancel over 2 million of its own shares valued at 1.82 trillion won ($1.29 billion) this year to boost share 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 stocks last year to defend against a takeover threat from an alliance between its biggest shareholder, Young Poong Corp., and private equity ally MBK Partners.
In March this year, 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 biggest 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.