Korea Zinc, 'Stock Price Manipulation' Allegations Amid Management Dispute… Calls for Financial Authorities' Investigation

 

 

 

 

As the management dispute over Korea Zinc intensifies, allegations of "market manipulation" surrounding recent stock price fluctuations have surfaced, causing tension in the financial investment sector.

These suspicions could become another variable in the battle for control between Korea Zinc and the MBK Partners-Young Poong alliance, but with unclear initial clues, there is also speculation that the financial authorities' investigation may be prolonged.

On the 14th, the last day of the MBK-Young Poong alliance's tender offer, Korea Zinc's stock price experienced repeated sharp fluctuations.

At one point in the afternoon, the stock price rose to 820,000 KRW, only to plummet to 779,000 KRW before closing the day at 793,000 KRW.

At the time, the MBK-Young Poong alliance was conducting a tender offer at 830,000 KRW per share, while Korea Zinc was countering by buying back its own shares at 890,000 KRW per share.

Korea Zinc claimed that abnormal trading patterns were detected during this process and alleged that there was an attempt to intentionally lower the stock price.

They explained that patterns difficult to attribute to program trading and a concentration of sell orders at specific price points were repeatedly observed, and they have submitted a petition to the Financial Supervisory Service (FSS) requesting an investigation.

According to data from the Korea Exchange (KRX), individual investors sold large volumes of Korea Zinc shares during this period, while financial investment institutions and foreign investors bought in large quantities.

Industry insiders suggest that the investigation to determine whether market manipulation occurred could take an extended period of time.

The MBK-Young Poong alliance has criticized Korea Zinc's management for undervaluing the company's worth and running it unilaterally, expressing their intent to secure control by increasing their shareholdings.

On the other hand, Korea Zinc's Chairman Choi Yoon-beom has countered by accusing the alliance of attempting a hostile takeover (M&A) for short-term profit, arguing that they must defend the company's long-term stability by retaining control.

Through the tender offer, the MBK-Young Poong alliance has increased its stake in Korea Zinc to 38.47%, surpassing the management's stake of 33.99%.

As a result, a vote showdown is expected at the upcoming shareholders' meeting, and the fight for management control between the two sides is likely to become even more fierce.

출처 : 산경투데이 https://www.sankyungtoday.com

 

https://www.sankyungtoday.com/news/articleView.html?idxno=48904

Korea Zinc, 'Stock Price Manipulation' Allegations Amid Management Dispute… Calls for Financial Authorities' Investigation