SEOUL, South Korea, Oct. 11, 2024 /PRNewswire/ -- Korea Zinc (KRX:010130), a global leader in the production of non-ferrous metals and a key player in critical supply chains, today issued an official statement announcing the amendments to its share buyback and cancellation plan, originally approved on October 2. The company announced key changes, including an increase in the tender offer price from KRW 830,000 to KRW 890,000 and an expansion of the buyback volume from 15.5% to 17.5%. If shares held by Ban Capital are included, the total tender offer could reach 20%.
The changes were made after careful consideration by the board, addressing market conditions and concerns raised by financial authorities. These adjustments aim to bolster shareholder confidence and protect against potential losses caused by stock price volatility.
A full statement from Korea Zinc is attached below:
Official Statement by Korea Zinc
To our shareholders and esteemed members of the public,
Today, Korea Zinc convened a board meeting to amend certain aspects of the share buyback and cancellation plan approved on October 2. Korea Zinc has decided to raise the tender offer price from KRW 830,000 to KRW 890,000 and expand the buyback volume from 15.5% to 17.5%. The total tender offer is expected to reach 20% if the shares held by Bain Capital are included.
Today's resolution was made following thorough discussions and deliberation by the board, taking into account the market conditions and the concerns raised by financial authorities.
The primary focus of this decision was to increase the buyback volume, providing shareholders greater confidence in participating in Korea Zinc's tender offer. The board and management carefully considered potential incur losses due to stock price volatility following the tender offer. By effectively expanding the tender offer to cover the entirety of Korea Zinc's circulating shares, the goal is to protect shareholders and minimize market disruptions.
We sincerely hope this decision will resolve the confusion in the market and ease the concerns from both the media and the public.
Once again, we would like to emphasize that Korea Zinc's share repurchase is a legal procedure being carried out in accordance with the court ruling on October 2. We are fully committed to completing this tender offer successfully, as stipulated by law. Additionally, Korea Zinc will retire all shares acquired through this tender offer to further enhance the shareholder value.
We strongly urge you not to be swayed by misinformation or rumors deliberately spread in the market to cause disruption. We encourage participation in the tender offer with confidence and assurance. We also want to make it clear that we will take all the necessary actions to hold accountable those responsible for spreading false information or rumors that disrupt the capital market.
In an effort to swiftly mitigate the negative effects of this situation, the management, employees, and labor will work together to restore normal operations and seize this opportunity to rebuild an even stronger company. We would like to express our sincere gratitude to all shareholders and the public for their trust and support for the current management and employees of Korea Zinc. We sincerely hope that all the turmoil that began with the surprise takeover attempt by the private equity fund will be quickly stabilized.
On the occasion of Korea Zinc's 50th anniversary on August 1, we announced our mission and core values for the next 50 years, reflecting the thoughts and concerns of all our members.
"To convert diverse raw materials and energy sources into the materials and energy needed by the world in the safest, most eco-friendly and most efficient manner."
We will do our best to successfully fulfill this mission.
We also promise to emerge from this crisis even stronger and more robust. We will not lose sight of our commitment to serve as the foundation of Korea's economic development at the forefront of national key and strategic industries.
We would like to express my gratitude once again to our esteemed shareholders, the people of Korea, and the citizens of Ulsan.