The withdrawal of the share sale plan and the replacement of the chairman come after two months of public fighting over the company's direction and strategy. The feud began when private equity firm MBK Partners Ltd teamed up with Korea Zinc’s top investor Young Poong Corp. and launched an unsolicited takeover bid. In response, Choi launched a share buyback by involving Bain Capital. The FSS's investigation into the matter will continue despite these developments.
Key takeaways:
- South Korea's financial watchdog, the Financial Supervisory Service, will continue its probe into Korea Zinc Co.'s disputed $1.8 billion share sale plan, despite the company withdrawing the plan due to regulatory pressures.
- The company's Chairman Choi Yun-beom will be replaced as the head of the board, but will continue as the chief executive officer.
- The withdrawal of the share sale plan and the replacement of the chairman is seen as a blow to Choi's attempt to counter a hostile takeover bid for the company.
- The feud between two shareholder groups, which includes a private equity firm and Korea Zinc's top investor, has resulted in a bitter public fight over the direction and strategy of the company.