Korea Zinc takeover battle reaches crucial deadline

By Kim Joo-heon Posted : October 14, 2024, 12:45 Updated : October 14, 2024, 12:45
This photo shows Korea Zinc Chairman Choi Yun-beom speaking at a press conference in Seoul on the management dispute with Young Poong and MBK Partners Yonhap
This photo shows Korea Zinc Chairman Choi Yun-beom speaking at a press conference in Seoul on the management control dispute with Young Poong and MBK Partners. Yonhap
SEOUL, October 14 (AJP) - A monthlong battle for control of Korea Zinc, the world's largest zinc smelter, reaches a critical juncture on Monday as a tender offer from a consortium led by its largest shareholder expires.

Young Poong Corp. and private equity firm MBK Partners have offered 830,000 won ($612.30) per share for up to 14.61 percent of Korea Zinc's stock. The offer, which has been raised twice, concludes at 3:30 p.m. local time.

In response, Korea Zinc Chairman Choi Yun-beom raised his counteroffer to 890,000 won per share on Friday, supported by U.S. investment firm Bain Capital.

Analysts expect Young Poong and MBK to fall short of their target and potentially acquire only a single-digit percentage stake. The outcome remains uncertain due to tax implications for investors and pending legal challenges.

Korea Zinc will continue its public tender offer until Oct. 23, aiming to acquire up to 17.5 percent of the total shares. Bain Capital aims to separately purchase an additional 2.5 percent.

Analysts expect disputes to continue until the regular shareholder meeting season in March next year.
 
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