Tender offer by Korea Zinc for own shares set to expire

A multi-billion dollar counteroffer by Korea Zinc Inc. for its own shares is set to expire Wednesday, with shares of the world's biggest zinc smelter trading below the offer price. Korea Zinc has been mired in a takeover battle against private equity firm MBK Partners and Young Poong Corp., the smelter's largest shareholder. Shares of Korea Zinc rose 1.26 percent to 885,000 won (US$640.60) as of 2:30 p.m. on Wednesday, compared with the offer price of 890,000 won. Last week, MBK and Young Poong said they secured a 5.34 percent stake in Korea Zinc in their tender offer for the zinc smelter, raising their combined share to 38.47 percent. Korea Zinc's chairman Choi Yun-beom and his supporting investors currently control a 33.99 percent stake, according to industry sources. Earlier this week, a special purpose company set up by Choi succeeded in its tender offer for Young Poong Precision, which holds a 1.85 percent stake in Korea Zinc. Korea Zinc was co-founded in 1974 by Chang Byung-hee and Choi Ki-ho and has been stably managed for decades by the Choi family. However, the ongoing battle for control erupted last month after current chairman, who took office in 2022, sought to separate the company from Young Poong. Source: Yonhap News Agency