[Alpha Biz= Reporter Kim Jisun] Youngpoong Precision, a subsidiary of Korea Zinc, has filed an injunction to block the execution of a management cooperation agreement between private equity firm MBK Partners and the Youngpoong consortium, amid an ongoing management dispute with Korea Zinc.
In a press release on the 6th, Youngpoong Precision announced that it had submitted the injunction request to the Seoul Central District Court. The request seeks to prohibit the implementation of the management cooperation agreement and a monetary loan agreement between Youngpoong's Senior Advisor Jang Hyung-jin, outside directors, MBK, and MBK's Vice Chairman Kim Kwang-il.
Previously, Youngpoong Precision had accused MBK’s tender offer for Korea Zinc of being a hostile takeover and filed criminal charges against Jang Hyung-jin, three outside directors of Youngpoong, and MBK’s Vice Chairman for breach of fiduciary duty with the Seoul Central District Prosecutors' Office.
Youngpoong Precision claims that the current tender offer for Korea Zinc is being conducted under the framework of the management cooperation and loan agreements between MBK and the Youngpoong consortium, and seeks to suspend their effectiveness.
Youngpoong Precision, in which Korea Zinc Chairman Choi Yoon-bum holds control, is a shareholder in Youngpoong. Holding a 1.85% stake in Korea Zinc, Youngpoong Precision is seen as a key player in the ongoing battle for control of Korea Zinc.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
