Court Again Dismisses Yeongpung's Injunction... Korea Zinc "Will Protect Management Rights by Acquiring Treasury Shares"

On the 21st, the injunction to prohibit Korea Zinc's treasury stock acquisition was dismissed
Korea Zinc: "Legal penalties such as market manipulation are inevitable"
"We will protect management rights from the MBK-Youngpoong alliance"

The court dismissed the second injunction filed by Youngpoong and MBK Partners to halt Korea Zinc's tender offer for its own shares. Korea Zinc reaffirmed its intention to continue purchasing its own shares to strengthen its management control through this ruling.

On the 21st, the Civil Division 50 of the Seoul Central District Court (Presiding Judge Kim Sang-hoon) dismissed the injunction filed by MBK to suspend the tender offer process. This injunction was filed by Youngpoong to prevent Korea Zinc's announcement that it would conduct a tender offer for its own shares worth 3.6 trillion won by the 23rd.

Korea Zinc argued that this injunction created uncertainty around the tender offer for its own shares, affecting shareholders and was intended to induce shareholders to respond to the tender offer promoted by Youngpoong and MBK.

Despite offering a profit 60,000 won higher than the tender offer prices of Youngpoong and MBK, Korea Zinc stated that shareholders holding more than 5% artificially suffered financial losses, which constitutes market manipulation and capital market disruption, and that legal penalties are unavoidable. Previously, 5.34% of the subscription volume was concentrated in the tender offer by Youngpoong and MBK, which ended on the 14th.

Korea Zinc emphasized, "According to the court's decision, we will legally complete the acquisition of treasury shares and protect management rights from the alliance of MBK and Youngpoong by strengthening voting rights." It added, "Through this, we will normalize the halted management and contribute to the national economic development as a non-ferrous metal company playing an important role in the country's key industries."

A company official said, "We will continue close cooperation with the remaining shareholders while also striving to enhance shareholder value," and added, "We will comfort employees who have experienced mental difficulties due to the opponent's forced tender offer so that they can regain strength."