MBK Partners, a private equity firm, through its special-purpose vehicle Korea Corporate Investment Holdings, has acquired an additional 1.13% stake in Korea Zinc.
This acquisition raises MBK Partners and South Korean conglomerate Young Poong’s combined stake to 40.97% of total issued shares and 46.7% of voting shares, excluding treasury stock, moving them closer to majority control.
According to disclosures from the Financial Supervisory Service’s electronic reporting system, 234,451 shares were purchased by Korea Corporate Investment Holdings.
The transaction represents 1.13% of Korea Zinc’s total issued shares and was completed through open-market trading under the ‘Careful Discretion’ method between 12 November and 18 December.
This transaction increases Korea Corporate Investment Holdings’ independent holding to 7.82% of Korea Zinc’s total issued shares and 8.9% of voting shares.
This includes a 5.32% stake acquired via a tender offer completed on 14 October and a 1.36% stake purchased on the open market last month.
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By GlobalData
Combined with Young Poong and related parties’ existing 33.13% stake, as well as an additional 0.02% Young Poong acquired through the tender offer, MBK Partners and Young Poong have expanded their position as the largest shareholders of Korea Zinc.
In a related development, Korea Zinc recently cancelled the proposed issuance of 3,732,650 new shares, amounting to nearly 20% of its total shares, worth $1.8bn (2.61trn won).
Yun B Choi, chairman of Korea Zinc’s board and grandson of the company’s co-founder, has pledged to step down and allow an outsider to take the role.
This decision comes amidst an intensifying takeover struggle involving founding family members and external investors Young Poong and MBK Partners.
Korea Zinc had originally planned to issue the shares to fend off a takeover attempt by Young Poong and MBK Partners.
However, the plan sparked investor concerns and was met with regulatory scrutiny, forcing the company to withdraw the proposal.
