Korea Zinc "Withdrawal of Treasury Stock Tender Offer Legally Impossible"

Choi Yoon-beom, Chairman of Korea Zinc, is speaking at the Korea Zinc press conference held on the afternoon of the 2nd at the Grand Hyatt Hotel in Yongsan-gu, Seoul. [Image source=Yonhap News]

Korea Zinc stated that the tender offer for its treasury shares cannot be legally withdrawn, dismissing the possibility of withdrawal or suspension of the tender offer raised by some parties.

On the 11th, Korea Zinc issued a press release titled "Withdrawal of Korea Zinc's Tender Offer for Treasury Shares is Legally Impossible," stating, "According to the court ruling on the 2nd, the tender offer for treasury shares (self-stock acquisition tender offer) being conducted lawfully by Korea Zinc cannot be legally withdrawn. Although withdrawal is only possible in extremely exceptional cases such as natural disasters, some parties are deliberately spreading false information unofficially and through rumors that Korea Zinc can withdraw or suspend the tender offer." The company added, "This is clearly intended to obstruct Korea Zinc's tender offer."

According to the Capital Market Act, withdrawal of a tender offer is exceptionally allowed only in cases such as a competing tender offer during the tender period, or if the tender offeror dies, dissolves, or goes bankrupt. The enforcement decree strictly limits such exceptional withdrawals to cases including ▲merger, division, spin-off, comprehensive transfer or exchange of stocks ▲transfer or acquisition of significant business or assets ▲dissolution ▲bankruptcy ▲natural disasters, wartime, armed conflict, fire ▲or other disasters causing damage exceeding 10% of total assets in the most recent fiscal year.

Korea Zinc stated, "This tender offer is being closely watched not only by local communities such as Ulsan but also by civil society and political circles concerned about damage to national key industries, as well as overseas markets and governments including the United States and Australia. Spreading false information unofficially and through rumors is a very dangerous act and is subject to legal liability and punishment."