Korea Zinc Gets Sweetened Takeover Offer

By P.R. Venkat

A consortium led by South Korean private-equity firm MBK Partners has raised its offer for Korea Zinc, sending shares of the world's largest refined zinc producer to fresh highs.

MBK Partners, alongside Korea Zinc shareholder Young Poong and others, has offered to pay 750,000 won per share, equivalent to $561.57, a 14% premium to the original offer of 660,000 won per share, the private-equity firm said in a regulatory filing Thursday.

Shares rose as much as 6.5% on Thursday morning to 747,000 won, and were last up 1.9%.

MBK plans to acquire an additional 14.6% stake in Korea Zinc, putting the total deal value at $1.70 billion.

"If they hit the ceiling for this tender at 14.6%, the total funds being thrown at this buyout now clock in at 2.27 trillion won--the biggest tender deal South Korea's ever seen," Sanghyun Park of Clepsydra Capital, who publishes on Smartkarma, said in a note.

Consortium partner Young Poong currently owns a 33% stake in Korea Zinc. The consortium's offer is aimed at securing a total controlling stake of 47.74% in the company.

MBK said previously that the additional stake purchase would help "consolidate managerial rights, restore damaged governance, and maximize shareholder value" at Korea Zinc.

Korea Zinc didn't immediately respond to the revised tender offer but had opposed MBK's previous offer, saying the bid was hostile and predatory.

MBK Partners said it manages $30 billion in capital globally and focuses on North Asian markets, including China, Japan and Korea. The South Korean homegrown buyout firm has offices in Seoul, Beijing, Hong Kong, Shanghai and Tokyo.

Write to P.R. Venkat at venkat.pr@wsj.com

(END) Dow Jones Newswires

September 25, 2024 21:57 ET (01:57 GMT)

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