Korea: Korea Zinc Co. announced it will hold a board of directors meeting to address a potential “hostile” takeover by its largest shareholder, Young Poong Corp., and private equity firm MBK Partners. Chairman Choi Yun-beom has requested board members to attend the emergency meeting on Wednesday, as the coalition plans an extraordinary shareholders meeting aiming for substantial changes in the company’s structure, a spokesperson stated.
According to Yonhap News Agency, the board meeting is expected to focus on strategies to counter the Young Poong coalition’s shareholders meeting and methods to increase its friendly shares in the control battle for the world’s largest refined zinc smelter. The Young Poong group announced earlier their intent to push for significant changes in the board and improve corporate governance, although the date for their shareholders meeting remains undecided.
Earlier this month, Young Poong and MBK Partners increased their stake in Korea Zinc to 38.47 percent through a tender offe
r. In response, Korea Zinc, in collaboration with Bain Capital, acquired an 11.26 percent stake in a recent buyback, raising their total share to 35.4 percent. Additionally, Korea Zinc plans to cancel a 9.85 percent stake to boost shareholder value.
The smelter anticipates its friendly shares, including those held by the Choi family, will exceed 40 percent post-cancellation, nearly matching the Young Poong side’s estimated 42 percent. Korea Zinc is also considering acquiring more treasury stocks with voting rights and additional friendly shares to defend against the Young Poong-MBK coalition.