Court dismisses provisional injunction request for 'prohibition of acquisition of Korea Zinc shares'

The court ruled in favor of Korea Zinc in a court dispute over the management rights of Korea Zinc, the world's No. 1 nonferrous metal smelter.

The Seoul Central District Court today (2nd) rejected Youngpoong's request for an injunction against the acquisition of treasury stocks against Chairman Choi Yoon-beom of Korea Zinc.

The court did not accept Youngpoong's argument that Korea Zinc should not buy back its own shares, saying it cannot be concluded that it is a special stakeholder of a tender buyer as stipulated in the Capital Markets Act.

According to the court's decision, Korea Zinc will be able to make counter-tender offers and share buybacks, which have been discussed as a means of defending management rights.

Earlier, Youngpoong and private equity operator MBK Partners filed a provisional injunction to prevent Korea Zinc from acquiring treasury stocks during the tender period, saying they would make a tender offer to secure management rights for Korea Zinc.

In the interrogation, Youngpoong argued that it was impossible to buy back shares of Korea Zinc as a special official, an affiliate of Youngpoong, but Korea Zinc countered that the ban on separate purchases does not apply because it is no longer a special official of Youngpoong.

According to Article 140 of the Capital Markets Act, a Tender Offeror and its special parties may not purchase shares of a company subject to a Tender Offer in any way other than a Tender Offer during the Tender Offer Period.