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Korea Zinc grabs 11% stake in bid to fend off takeover

Published: 28 Oct. 2024, 14:03 Updated: 28 Oct. 2024, 16:45

KIM JU-YEON
[email protected]

A screen at Korea Exchange's office in Yeouido, western Seoul, shows Korea Zinc's share price on Oct. 23, the day its public buyback offer ended. [NEWS1]

Korea Zinc secured 11.26 percent of its own shares in a buyback aimed at fending off a “hostile” takeover attempt.

The world's biggest zinc smelter said Monday that it plans to cancel all of the shares it has acquired — amounting to a 9.85 percent stake — which do not come with voting rights. Bain Capital, which backed the company in the public offer, took the remaining 1.41 percent.

The firm had aimed to repurchase much as 20 percent of its stock at 890,000 won ($641) apiece in a battle for control with Young Poong, the company's largest shareholder, backed by private equity firm MBK Partners.

In their tender offer two weeks ago, Young Poong and MBK secured a 5.34 percent stake in Korea Zinc at 830,000 won per share, bringing their overall stake to more than 38 percent.

The buyback brought the overall stake held by Korea Zinc Chairman Choi Yun-beom and related parties to 29.32 percent from the previous 18.06 percent, the company said in a regulatory filing.

“Korea Zinc expects its friendly shares, including the Choi family's, to reach more than 40 percent after the planned cancellation, which is tantamount to the Young Poong side's estimated 42 percent,” a company spokesperson told Yonhap News.

BY KIM JU-YEON, YONHAP [[email protected]]