Korea Zinc Sweetens Buyback Bid in Escalating Takeover Fight

In a move to strengthen its position in the ongoing takeover battle, Korea Zinc Co., led by Chairman Choi Yun-beom, has raised its offer to buy back its own shares. The increased bid, announced on Friday, comes as the battle for control of the world's biggest zinc smelter intensifies.

Choi Yun-beom's special purpose company has increased its bid by 7.2% to 890,000 won ($659) per share, surpassing the rival offer of 830,000 won from MBK Partners and Young Poong Corp. This strategic move aims to wrestle control from the coalition of Korea Zinc's largest shareholder and the private equity firm, which had previously raised their offer to 830,000 won per share.

The increased offer by Choi Yun-beom has significant implications for the voting power and control dynamics within Korea Zinc. With the new bid, the chairman's supporting investors could potentially secure a majority stake, tipping the scales in their favor. This would enable them to gain control of the company and outmaneuver the rival coalition led by Young Poong and MBK Partners.


The financial feasibility of Choi Yun-beom's increased offer is a critical factor in determining the outcome of the takeover battle. The new bid requires 3.2 trillion won for the purchase, up from the initially planned 2.66 trillion won. While this represents a substantial investment, it is a testament to the chairman's determination to maintain control of the company. The increased offer could potentially lead to higher profitability for Korea Zinc in the long run, as it would enable the company to align its strategic direction with the vision of its current leadership.

The increased offer has also influenced the sentiment and trading behavior of Korea Zinc's shareholders and investors. The company's shares were trading at 788,000 won on the Seoul bourse as of 10:05 a.m., down 0.13 percent from the previous session. The market reaction suggests a degree of uncertainty among investors, who may be awaiting further developments in the takeover battle before making their decisions.


The potential regulatory implications and challenges for Choi Yun-beom's increased offer are significant. The takeover battle has raised concerns about the independence and fairness of the bidding process. Regulators may scrutinize the offer to ensure that it complies with relevant laws and regulations, including those related to insider trading and market manipulation. The outcome of the regulatory review could have a substantial impact on the takeover battle and the future of Korea Zinc.

In conclusion, the increased offer by Korea Zinc's Chairman Choi Yun-beom has escalated the takeover battle, with significant implications for the company's voting power, control dynamics, and financial feasibility. The market reaction and potential regulatory challenges highlight the complexity and uncertainty surrounding the ongoing dispute. As the battle for control of the world's biggest zinc smelter continues, investors and stakeholders will closely monitor the developments and assess the potential long-term implications for Korea Zinc's shareholders and the broader market.