Korea Zinc plunges over 13% as largest shareholder opposes plans for U.S. smelter
CNBC••business
Key Points:
- Korea Zinc shares dropped over 13% after its largest shareholder alliance opposed plans for a U.S.-backed joint venture that would dilute their equity stake in the company.
- The joint venture, supported by the Pentagon with a 40% stake, involves a $7.4 billion smelter project in Tennessee, with Korea Zinc issuing new shares worth $1.9 billion to the JV and strategic U.S. investors.
- The shareholder alliance, including MBK Partners and YoongPoong, claims the plan aims to allow Chairman Choi Yun-beom to retain management control and plans to seek a court injunction to block new share issuance.
- The share issuance would reduce the alliance's combined stake from about 44%
