SEOUL: Private equity firm MBK Partners and Young Poong Corp. have successfully secured a 5.34 percent stake in Korea Zinc Inc., the world’s largest zinc smelter, following a multibillion-dollar tender offer that concluded on Monday. This strategic acquisition positions MBK and Young Poong as the largest shareholders in the company, aiming to enhance corporate governance and shareholder value.
According to Yonhap News Agency, a regulatory filing by Young Poong, the tender offer attracted a 5.34 percent stake, with the shares set to be purchased at 830,000 won (US$614) each on Thursday. The partnership between MBK and Young Poong, which previously held a combined stake of 33.1 percent, has further solidified their influence over Korea Zinc. In response to this acquisition, Korea Zinc launched a counteroffer to repurchase its shares at a higher price, initially matching the coalition’s offer and then boosting it to 890,000 won per share, planning to secure up to 20 percent of its treasury shares for cancellati
on to enhance shareholder value.
The acquisition comes after MBK and Young Poong raised their offer price twice following their initial announcement on September 12 to acquire up to 14.61 percent of Korea Zinc. Despite the aggressive countermeasures by Korea Zinc, which include a significant share buyback plan, MBK has expressed concerns that these actions could lead to irreversible financial damage to the zinc firm. The ongoing takeover battle has heated up with both sides adjusting strategies and Korea Zinc underperforming in Monday’s trading session, with shares rising only 0.13 percent to 793,000 won, lagging behind the broader Korea Composite Stock Price Index’s 1.02 percent gain.
Industry experts have voiced skepticism about a clear-cut victory for either side in this corporate tug-of-war, anticipating a continuation of the dispute into early next year with potential rounds of ad hoc shareholder meetings and competitions for voting rights. Amidst these developments, the Financial Supervisory Service h
as issued a warning against any unfair trading practices, indicating a close monitoring of the situation and readiness to enforce regulations.