Korea Zinc, KRW 2.5 trillion capital increase...20% of all issued shares

Korea Zinc, which is in a management dispute, is launching a paid-in capital increase for the general public offering worth 2.5 trillion won.

Korea Zinc announced that it held an extraordinary board meeting at its headquarters in Jongno-gu, Seoul, this morning (30th) and decided on the agenda for the capital increase for the general public offering.

Accordingly, 3,732,650 common shares, which account for 20% of all issued shares excluding treasury stocks subject to retirement, will be paid-in capital increase at 670,000 won per share.．

Of these, 80% will be allocated to the general public offering and the remaining 20% to the employee stock ownership association.

It is interpreted that Korea Zinc intends to use the funds secured by the capital increase to resolve the debt accumulated by the tender offer of treasury stocks and increase its stake in the employee stock ownership association to gain an advantage in the voting rights dispute with Youngpoong and MBK Partners.

Korea Zinc said it will invest the funds secured through the paid-in capital increase to foster national strategic industries such as secondary batteries, and use some of them to repay debts.