(Bloomberg) -- Korea Zinc Co. has scrapped a planned $1.8 billion share sale, nearly two weeks after its announcement prompted a selloff in the stock and triggered an investigation by the country’s financial watchdog.
Korea Zinc said in a regulatory filing on Wednesday that it considered opinions of market participants and shareholders before making the decision. The announcement deals a blow to Chairman Choi Yun-beom’s efforts to shore up support among shareholders and employees, who stood to be allocated a fifth of the new stock. It would also delay his proposed move to pay down debt.
Shortly after the share issue plan was announced late last month, Financial Supervisory Service ordered Korea Zinc, the world’s biggest zinc smelter, to revise its filing, saying the original plan lacked details, including around the decision-making process and due diligence on the arranger. The FSS launched an investigation into potential wrongdoings.
--With assistance from Seyoon Kim.
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