The world's largest smelter announced the share issue Oct. 30 to fend off a takeover attempt by its largest shareholder, Young Poong, and MBK Partners.
"We humbly accepted concerns from shareholders and market participants that we hadn't anticipated when we initially decided on the public offering," the company said after an extraordinary board meeting.
The decision came a week after the Financial Supervisory Service asked Korea Zinc to correct its securities registration statement, effectively suspending the share sale plan on Nov. 6.
With the plan scrapped, the control battle between Korea Zinc and the Young Poong-MBK alliance is expected to be decided by shareholders at a meeting by year's end.
Later Wednesday, Korea Zinc Chairman Choi Yun-beom announced he would step down as board chairman as soon as possible.
"We will work on measures to strengthen the independence of the board, protect minority shareholders, and encourage their participation," Choi said at a press conference in Seoul.
Korea Zinc was co-founded in 1974 by Chang Byung-hee and Choi Ki-ho. The Choi family currently manages Korea Zinc, while the Chang family controls Young Poong and its electronics affiliates.
Competition between the families has intensified since Choi became chairman in 2022.
Copyright ⓒ Aju Press All rights reserved.
