Ulsan Mayor Kim Doo-gyum speaks throughout a press convention at Ulsan Metropolis Corridor, Wednesday. Carrying a jacket with Korea Zinc’s brand, he urged the town’s residents to purchase shares within the smelting agency to forestall MBK Companions from controlling the corporate. Yonhap
MBK, Younger Poong justify try and oust chairman
By Park Jae-hyuk
A battle between Younger Poong’s founding households over Korea Zinc’s administration rights has intensified, with politicians now expressing considerations over the involvement of MBK Companions within the energy battle.
Ulsan Mayor Kim Doo-gyum and the town’s council members have leveled criticism on the non-public fairness agency (PEF), which has joined palms with Younger Poong to inherit its place as Korea Zinc’s largest shareholder and oust Choi Yun-beom from the chairmanship of the smelting firm, which has a manufacturing facility within the southeastern port metropolis.
“I need 1.2 million residents of Ulsan to purchase Korea Zinc’s shares, simply as they carried out a marketing campaign to accumulate SK’s shares 20 years in the past to guard the conglomerate from a international hedge fund,” the mayor mentioned throughout a press convention, Wednesday, two days after he issued a press release alleging that MBK is backed by Chinese language capital.
In response, MBK and Younger Poong dismissed considerations over the PEF’s plan to handle Korea Zinc, emphasizing alleged irregularities involving Choi.
“Based in 2005 in compliance with the Monetary Funding Companies and Capital Markets Act, MBK is a home PEF beneath the supervision of the Korean monetary authorities,” the PEF mentioned in a press launch.
“We are going to assist Korea Zinc fulfill its social duty as an Ulsan-based firm.”
MBK agreed final Thursday to accumulate 50 % plus one share of Younger Poong’s 33.1 % stake in Korea Zinc and launched a young supply of as much as 2 trillion received ($1.5 billion) final Friday to change into the biggest shareholder of Korea Zinc.
The proposal got here because the Korea Zinc chairman, who’s the grandson of Younger Poong co-founder Choi Ki-ho, has been at odds with Younger Poong adviser Chang Hyung-jin, the son of one other co-founder, Chang Byung-hee.
Since taking management of Korea Zinc in 2022, Choi has sought independence from Younger Poong, regardless of the historical past of the Choi household overseeing Korea Zinc and the Chang household managing Younger Poong’s electronics associates.
Korea Zinc Chairman Choi Yun-beom, left, and Younger Poong adviser Chang Hyung-jin / Courtesy of every firm
On Tuesday, Rep. Park Hee-seong of the principle opposition Democratic Social gathering of Korea claimed that MBK’s tender supply is a hostile takeover, sharing the view of a bunch of Korea Zinc’s minority shareholders who credit score Choi with delivering stable earnings and boosting the corporate’s inventory worth.
Korea Zinc additionally described MBK as a company raider and criticized Younger Poong for polluting the neighborhood of its smelter in Seokpo, Bonghwa, North Gyeongsang Province.
In response, MBK and Younger Poong mentioned that it’s inappropriate to explain the tender supply as a hostile takeover, contemplating the truth that Younger Poong and the Chang household maintain a 33.1 % stake in Korea Zinc, greater than double the 15.6 % stake held by the Choi household.
They added that Hyundai Motor, Hanwha and LG, that are among the many main shareholders of Korea Zinc, usually are not on Choi’s facet, as the businesses haven’t disclosed their intentions to train their voting rights in his favor.
“These corporations solely talked about their enterprise partnerships with Korea Zinc,” the PEF mentioned.
Meritz Securities analyst Jang Jae-hyeok forecasted that it’s unlikely for Korea Zinc to match the monetary energy of MBK and Younger Poong.
Market insiders count on the escalating tensions to boost Korea Zinc’s inventory worth additional.
Final Friday, Korea Zinc’s inventory worth soared sharply, surpassing 660,000 received, MBK’s tender supply worth. It closed at 666,000 received, a rise of 19.78 % in comparison with the earlier buying and selling day.
