Korea Zinc, the world’s largest zinc smelter, has announced a share buyback worth 2.7 trillion won (US$2 billion) as part of its defense against a management dispute involving Young Poong and private equity firm MBK Partners. The buyback, disclosed on October 2, will target 15.5% of the company’s issued shares at 830,000 won per share, 11% higher than MBK’s offer of 750,000 won.
This move follows a Seoul court’s dismissal of Young Poong’s request to block the buyback, though Young Poong has filed a new injunction. Korea Zinc’s offer period is from October 4 to 23, and if the minimum share purchase threshold is not met, the company may cancel the acquisition.
Korea Zinc’s buyback will be conducted alongside Bain Capital, which plans to purchase up to 2.5% of the total shares. The company’s leadership, including Chairman Choi Yoon-beom, holds around 33.9%, while Young Poong and MBK control 33.1%.
Additionally, Korea Zinc is raising 1 trillion won through high-interest private bonds, a move criticized by MBK as a breach of fiduciary duty due to unnecessary interest costs. The conflict underscores growing concerns about corporate governance at Korea Zinc.
