Korea Zinc expressed confidence in its financial soundness to investors, stating that its debt ratio will remain below 100% even if it proceeds with its share repurchase.
On the 13th, Korea Zinc issued a statement saying, "Even if we purchase shares equivalent to a 20% stake at the planned price of 890,000 KRW per share, the debt ratio will remain below 100%."
Korea Zinc explained, "The company's financial soundness has already been reviewed and confirmed by banks and other financial institutions," adding, "Even if we repurchase and cancel all shares amounting to 20% at 890,000 KRW per share, the debt ratio will be 78% (91% on a consolidated basis), still below 100%."
It also added, "EBITDA (earnings before interest, taxes, depreciation, and amortization) is expected to be a solid 1.3 trillion KRW level, enabling swift repayment completion."
This stance from Korea Zinc's management is interpreted as a response to the claim made the previous day by the Youngpoong-MBK alliance, which argued that the debt ratio could rise to 245% by 2030 due to the burden of Korea Zinc's share repurchase.
Earlier, the Youngpoong-MBK alliance forecasted in a press release that "even if Korea Zinc generates 1.2 trillion KRW in cash annually over the next six years, the debt ratio will reach 244.7% by 2030 due to repayments of borrowings from the share repurchase, interest, dividends, and investments in facilities and the Troika Drive (future industries)."
Korea Zinc also responded to the Youngpoong-MBK alliance's continued raising of 'legal risks' regarding Korea Zinc's share repurchase amid ongoing court injunction proceedings, stating, "It is unacceptable to unilaterally prejudge the outcome of a trial whose hearing date has not even passed, claim victory, and spread assertions that there is uncertainty about the company's share repurchase."
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