Young Poong announced on the 7th that it will establish a limited liability company, YPC Limited, by contributing all of its shares in Korea Zinc as an in-kind contribution. This aims to eliminate the circular investment structure created by Korea Zinc and protect Young Poong's voting rights in Korea Zinc.
Young Poong stated on the 7th that its board of directors resolved to establish YPC Limited by contributing all of its equity in Korea Zinc (25.42% equity). In return, Young Poong will acquire 877,075 shares of YPC. The acquisition amount is approximately 3.9265 trillion won. YPC will become a wholly-owned subsidiary (100% equity) of Young Poong.
YPC will engage in holding management overseeing the business operations of Korea Zinc. Kim Ki-ho, president of Young Poong (head of Seokpo Refinery), will serve as the representative of YPC.
Young Poong noted that establishing the new corporation, YPC, as a limited liability company rather than a corporation clearly indicates that the purpose of the in-kind transfer of Korea Zinc shares is solely to secure voting rights in Korea Zinc.
Young Poong explained that it will establish a limited liability company by contributing all of its shares in Korea Zinc to protect its voting rights and maintain stable control over Korea Zinc. Young Poong stated, "Since Chairman Choi Yoon-beom's side formed an illegal circular investment structure using its Australian subsidiary, SMC, to abruptly deprive the voting rights of the largest shareholder, Young Poong, at the extraordinary shareholders' meeting of Korea Zinc held on Jan. 23, the Korea Zinc shares will be transferred to the newly established company to eliminate the mutual investment structure among 'SMC-Young Poong-Korea Zinc.'"