MBK Partners and Young Poong Submit Tender Offer for Controlling Stake in Korea Zinc
South Korean investment firm MBK Partners and Young Poong Corp. have jointly submitted an application to acquire a 14.6% controlling stake in Korea Zinc, the world's largest producer of refined zinc. The deal is aimed at improving corporate governance and enhancing the value of Korea Zinc, amid disagreements within the company’s ownership regarding its ambitious and costly battery metals and renewable energy project. This project is designed to make Korea Zinc's operations more sustainable in the carbon-intensive metallurgy sector.
Korea Zinc, however, opposes MBK's tender offer, viewing it as a "hostile takeover." Young Poong and the company’s founding family, who collectively own more than 30% of Korea Zinc’s shares, are key shareholders.
Under the terms of the offer, MBK would gain one more share than Young Poong, providing it with the right to vote on Young Poong's remaining stake in Korea Zinc after the deal is finalized. The tender offer, priced at 660,000 won per share—a 19% premium over the September 12 closing price—will run from September 13 to October 4, 2024. Korea Zinc’s market value currently stands at 11.5 trillion won ($8.6 billion).
MBK Partners, a South Korean private investment firm, focuses on financial, consumer, telecommunications, and media sectors, particularly in North Asia, with a portfolio exceeding $30 billion. Korea Zinc is known for producing a wide range of non-ferrous metals, including zinc, gold, silver, lead, sulfuric acid, and copper.
Young Poong Corp., a conglomerate involved in mining and electronics, is one of South Korea’s largest businesses. It produces high-purity zinc ingots used for various applications, including hot-dip galvanizing and electroplating.
