Korea Zinc, the world’s leading zinc refiner, saw its shares plummet by nearly 29.9% on Wednesday after announcing a plan to issue new shares worth 2.5 trillion won ($1.81 billion). The Choi family-run company is currently embroiled in a heated struggle for control of its $18 billion empire with the co-founding Chang family, whose conglomerate Young Poong partnered with MBK to make a joint offer in September.
In a regulatory filing, Korea Zinc disclosed that its board approved the issuance of approximately 3.73 million shares at 670,000 won each — a 57% discount from Tuesday’s closing price of 1,543,000 won. Notably, 20% of these shares will go to an employee ownership association, potentially boosting support for current management.
This strategic issuance follows a recent buyback in which Korea Zinc repurchased 9.85% of its shares at 890,000 won per share in a $1.5 billion move aimed at deterring shareholders from selling stakes to Young Poong and MBK.
The newly raised funds, estimated at 2.3 trillion won, are earmarked primarily for debt reduction. Korea Zinc emphasized that the issuance would expand its shareholder base and lower delisting risks. The new shares are expected to be listed on December 18.