Tussle for Control of Korea Zinc Sends Shares Higher

By Kwanwoo Jun

A battle for control over Korea Zinc, the world's largest zinc smelter, heated up further, sending its shares higher Friday.

Shares of the Seoul-based nonferrous-metal producer closed 8.8% higher at 776,000 won, equivalent to $581.22, outperforming the benchmark Kospi's 0.3% gain.

The rally came after a consortium led by South Korean private-equity firm MBK Partners raised its tender offer--twice in less than a month--to match a bid by a Korea Zinc-Bain Capital alliance of 830,000 won apiece.

MBK, which is seeking to secure a controlling stake of up to 47.7% of Korea Zinc, had last week raised the offer to 750,000 won apiece from its initial offer of 660,000 won.

MBK also extended its tender offer timeline, originally due to end this weekend, to Oct. 14.

The bidding war began intensifying earlier this week when Boston-based Bain Capital entered the fray to team up with Korea Zinc to thwart the takeover attempt by MBK.

Bain Capital agreed to buy shares worth 430 billion won for a 2.5% stake in Korea Zinc.

Korea Zinc, led by Yun B. Choi, chairman and grandson of the co-founder, said it started buying back shares on Friday. The company plans to repurchase 2.663 trillion won of shares, and said it would spend more, if needed, to frustrate MBK's bid.

Write to Kwanwoo Jun at kwanwoo.jun@wsj.com

(END) Dow Jones Newswires

October 04, 2024 05:30 ET (09:30 GMT)

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