Korea Zinc to raise $1.8 bn in rights issues amid face-off with MBK

Quick Summary:

Some shareholders might turn their back on Korea Zinc and back MBK's takeover attempt, investment bankers warn.“From a short-term perspective, [Korea Zinc] appeared to get the upper hand [in the fight against MBK] by placing new shares to employee shareholders at a discount, but it will end up losing the support of other shareholders,” said an investment banker.

Korea Zinc Inc.will raise 2.5 trillion won ($1.8 billion) in rights issues in December following its share buybacks and allocate 20% of them to its employees, a move aimed at bolstering its defense against an MBK Partners-led group’s takeover bid.

If Korea Zinc’s employees with a combined 3.4% stake after the new share issues support its current management, it will secure about 37% of friendly shareholders, including its Chairman Choi Yun-birm and stakeholders.

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Article Details

Category: Economy

Markets: South Korea

Topics: Share Stake Zinc Offering Shares Raise Trillion Shareholders Rights Korea Takeover

Source Website Secure: Yes (HTTPS)

News Sentiment: Negative

Fact Checked: Legitimate

Article Type: News Report

Published On: 2024-10-30 @ 16:35:03 (1 days ago)

News Timezone: GMT +8:00

News Source URL: kedglobal.com

Language: English

Article Length: 499 words

Reading Time: 3 minutes read

Sentences: 26 lines

Sentence Length: 20 words per sentence (average)

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Copyright Owner: © Korea Economic Daily

News ID: 23336038

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