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Yoonbeom Choi, Chairman of Korea Zinc. (photo= Korea Zinc) |
[Alpha Biz= Reporter Kim Jisun] On the 18th, Young Poong and MBK Partners, currently conducting a tender offer for Korea Zinc, announced that once the tender offer aimed at strengthening the largest shareholder's management control is completed, they will work to restore damaged shareholder value and implement an active shareholder return policy for all shareholders.
A representative from Young Poong and MBK Partners emphasized that the key aspect of the shareholder return policy is the "complete cancellation" of all repurchased treasury shares.
They also claimed that Korea Zinc has been buying back its shares since the March shareholders' meeting to expand the friendly stake of Chairman Choi Yoon-bum. Since May, they estimate that Korea Zinc has repurchased treasury shares amounting to 258.8 billion KRW, representing 2.4% of the company's shares.
The representative further stated, "The full cancellation of this 2.4% in treasury shares, along with the cancellation of any future repurchased shares using the remaining funds from the fourth share buyback (approximately 290 billion KRW), is essential for enhancing shareholder value. We will actively communicate with the board of directors to achieve this."
They also announced plans to strengthen the company's dividend policy. According to Young Poong and MBK Partners, the average dividend per share over the past three years for Korea Zinc was 18,333 KRW. They plan to communicate with the board to increase the dividend to around 25,000 KRW per share. Additionally, they stressed that for Chairman Choi to dispel suspicions that the buybacks are solely for management control defense, he must clarify his position regarding the approximately 550 billion KRW worth of treasury shares.
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
