Korea Zinc Counters Management Challenge with $90M Bid for Young Poong

South Korea’s leading non-ferrous metal producer, Korea Zinc, has launched a counter-offensive in its ongoing power struggle with private equity firm MBK Partners. The company has announced a 118 billion won ($90 million) tender offer for Young Poong Precision, a manufacturer of chemical process pumps that holds a small but strategically important 1.85% stake in Korea Zinc.

The bid aims to secure a 25% stake in Young Poong Precision, which would increase the Choi family’s ownership from 35.45% to 60.45%. This move is designed to strengthen Chairman Choi Yun-beom’s control over Korea Zinc, countering the influence of the Jang family, which holds a 21.25% stake and has aligned with MBK Partners.

This strategic maneuver comes at a critical juncture, as Korea Zinc awaits a court ruling on an injunction filed by MBK Partners to prevent share buybacks. Should the court favor Korea Zinc, the company plans to repurchase shares at 800,000 won each, surpassing MBK’s offer of 750,000 won per share.

The outcome of this corporate tussle could significantly impact Korea Zinc’s future direction and market position. As the deadline for share purchases approaches on October 21, industry observers are closely monitoring these developments, recognizing their potential to reshape the company’s leadership and strategic focus.