Korea Zinc Completes Buyback Amidst Management Control Dispute

SEOUL: Korea Zinc Co. announced on Monday that it has completed a significant buyback of its shares, acquiring an 11.26 percent stake in the company. This strategic move, in collaboration with Bain Capital, is designed to strengthen its position against a takeover attempt by its largest shareholder, Young Poong Corp., and private equity firm MBK Partners. According to Yonhap News Agency, Korea Zinc had initially planned to repurchase up to 20 percent of its stock at a price of 890,000 won (approximately US$640) per share. This buyback is part of an ongoing struggle for control over the world's largest zinc smelter. Earlier this month, Young Poong and MBK Partners made a tender offer and successfully acquired a 5.34 percent stake in Korea Zinc at 830,000 won per share, increasing their total stake to 38.47 percent. The completion of the buyback has raised the stake held by Korea Zinc Chairman Choi Yun-beom and affiliated parties from 18.06 percent to 29.32 percent. In a regulatory filing, the company detaile d these strategic maneuvers as part of its defensive strategy against the takeover attempt. Following the announcement, Korea Zinc's stock saw a significant rise, jumping 6.4 percent to 1,332,000 won as of 2:10 p.m. Meanwhile, shares of Young Poong also increased by 6 percent to 391,500 won, outperforming the broader KOSPI index, which saw a modest gain of 1 percent.