Private equity firm MBK Partners raised its offer price by 13.6 percent to buy a controlling stake in Korea Zinc Inc. on Thursday, as a battle intensified for management control of the world's largest refined zinc producer. MBK, in cooperation with Young Poong, which is the biggest shareholder of Korea Zinc, launched a public tender offer to purchase a maximum 14.6 percent stake in the smelter for 660,000 won (US$495) per share on Sept. 13. But MBK's special purpose company, Korea Corporate Investment Holdings, said in a regulatory filing that it raised the offer price to 750,000 won per share. MBK's move had been expected because shares of Korea Zinc have surged since the tender offer was launched. As of 2 p.m. on Thursday, shares of Korea Zinc were trading at 712,000 won, up 1.14 percent from Wednesday's close. The tender offer is scheduled to continue through Oct. 4. This file photo, provided by Korea Zinc Inc., shows Korea Zinc Chairman Choi Yun-beom (C). (PHOTO NOT FOR SALE) (Yonhap) This file pho to, provided by Korea Zinc Inc., shows Korea Zinc Chairman Choi Yun-beom (C). (PHOTO NOT FOR SALE) (Yonhap) To meet the new price, MBK Partners will need over 2.2 trillion won, up from the previous 2 trillion won target. The equity firm has allocated 2 trillion won, including a 150 billion-won loan, for the tender offer. To finance the higher budget, the firm said it has borrowed an additional 300 billion won from Young Poong. Currently, Young Poong holds a 33 percent stake, while Korea Zinc and its owner family collectively own 18 percent. The coalition of Young Poong and MBK Partners has been in a fierce management battle with Korea Zinc. The coalition argues that Korea Zinc's current leadership has weakened the company's financial health, while Korea Zinc has labeled the share purchase as a "hostile takeover." Earlier this week, Korea Zinc Vice Chairman Lee Je-joong told reporters that the company would make all-out efforts to thwart the tender offer, denouncing it as "predatory behavior." An offici al at Korea Zinc told Yonhap News Agency that the company would make a "careful decision" after figuring out what MBK would finally do in the tender offer, but some analysts expected Korea Zinc to eventually make a counter-offer. The conflict marks the end of decadeslong cooperation between Young Poong and Korea Zinc, which were co-founded in 1974 by Chang Byung-hee and Choi Ki-ho. Since the founding, the Choi family has managed Korea Zinc, while the Chang family is in charge of Young Poong and other electronic parts affiliates. Tensions escalated in 2022 when Choi Yun-beom, grandson of co-founder Choi Ki-ho, became chairman of Korea Zinc and sought to separate the company from Young Poong, sparking the current battle for control. Source: Yonhap News Agency
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