Korea Zinc said on Wednesday it has decided to withdraw its plan to issue new shares worth $1.8 billion after the proposal sparked an investigation by the financial watchdog and a sell-off in its stock.

The decision comes amidst an intensifying takeover struggle involving founding family members and external investors Young Poong, a South Korean conglomerate, and private equity firm MBK Partners. Korea Zinc had originally planned to issue the shares to ...

Korea Zinc Co.’s board will meet on Wednesday to decide whether or not to proceed with a $1.8 billion share sale plan which prompted a selloff in the stock and triggered an investigation by the country’s financial watchdog.

The chairman of the board of Korea Zinc vowed on Wednesday to make way for an outsider after the firm dropped a plan to issue new shares worth $1.8 billion that had sparked an investigation by the financial watchdog and a share sell-off.

Korea Zinc cancelled its $1.8 billion share issuance plan after backlash, leading to Chairman Choi Yun-beom's resignation.

Korea Zinc Co., the world's largest refined zinc smelter, said Wednesday it will hold a shareholders meeting over its management control, hours after scrapping its share sale plan taken issue with by the financial regulator.

Korea Zinc said on Monday it has secured 9.85% of the company's shares in a $1.5 billion buyback that it launched to block shareholders from selling their stakes to its top investor Young Poong and private equity firm MBK.