[Anchor]
Korea Zinc and Youngpoong, who are in a management dispute, continued their legal battle over the tender offer of treasury stocks.
Claims that it is a means of defending management rights and claims that the company's money damages shareholders were tightly confronted.
Reporter Kwon Junsu reports.
[Reporter]
Korea Zinc announced that it will tenderly purchase 3.6 trillion won worth of treasury stocks from the 4th to the 23rd to protect shareholder value.
Management dispute Youngpoong and private equity firm MBK Partners put the brakes on a court filing for an injunction to stop it.It is a breach of duty for Chairman Choi Yoon-beom of Korea Zinc
to buy treasury stocks with company funds to acquire his management rights.
Youngpoong's agent said that Korea Zinc's stock price, which had been around 300,000 won to 550,000 won over the past decade, soared to 800,000 won due to management dispute issues,
If Chairman Choi buys treasury stocks at 890,000 won per share, the company is expected to lose 1.3 trillion won at the end of the purchase.
In response, Chairman Choi refuted that there is no reason to conclude that Youngpoong has already raised its open purchase price to 830,000 won, but 830,000 won is fine and 890,000 won is not appropriate.
In addition, the acquisition of treasury stocks is the only means to respond to "hostile mergers and acquisitions" seeking short-term investment returns and defend management rights,
I emphasized that it is essential to protect the enterprise value of
company.
He claimed that if Youngpoong and MBK Partners take control, not only the smelting business, which is Korea Zinc's main job, but also the new business will be suspended.
As the tribunal, which heard arguments from both sides, said it would review the records as soon as possible to avoid causing confusion in the market,
It is expected to make a final decision before the end of the tender offer period for
stockholders.
I'm YTN Kwon Junsu.
Video editing: Kim Hyun-joon
Design: Lee Na-young
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