SEOUL: Shares of Korea Zinc fell 29.9 percent to their daily lower limit in trading on Wednesday, after the world’s top zinc refiner announced plans to issue new shares of a worth 2.5 trillion won ($1.81 billion).

Led by the Choi family, Korea Zinc is waging a bitter fight to control the $18 billion zinc empire with co-founding Chang family, whose Young Poong conglomerate made an initial joint bid with MBK in September.

Korea Zinc said in a regulatory filing that its board of directors decided on Wednesday to issue some 3.73 million shares at a price of 670,000 won per share. That’s 57 percent lower than Tuesday’s closing price of 1,543,000 won.

Korea Zinc will allocate 20 percent of the newly issued shares to its employee stock ownership association, which experts say could increase the number of shares favorable to the current management.

The surprise move came after Korea Zinc bought back 9.85 percent of the company’s shares for 890,000 won each in a $1.5 billion buyback launched to prevent shareholders from selling their stakes to its lead investor Young Poong and private equity firm MBK.

Korea Zinc said the new share issue would expand the company’s shareholder base and reduce the risks of the “national company” being delisted from the stock market.

The company said that of the 2.5 trillion won in funds to be raised, 2.3 trillion won would be used to repay debt.

The new shares will be listed on December 18, the filing said.

($1 = 1,382.9400 won)