MBK Partners and Young Poong Raise Tender Offer Price for Korea Zinc in Heated Takeover Battle
In a fierce takeover battle for control of the world's largest refined zinc producer, private equity firm MBK Partners and Young Poong have increased their tender offer price for shares in Korea Zinc to match a counteroffer. The new tender offer, valued at 2.51 trillion won ($1.88 billion), now has an extended deadline to Oct 14.
Korea Zinc, run by the Choi family, is facing off against the co-founding Chang family, who made an initial joint offer with MBK in September. Both sides, along with their potential supporters, hold about a one-third stake in Korea Zinc. The fight for control has attracted global attention due to Korea Zinc's role in supplying raw materials for industries such as semiconductors and electric vehicle batteries.
After the announcement of the increased tender offer, Korea Zinc shares closed up 8.8%, reaching a record high of 791,000 won. However, the latest tender offers are at 830,000 won per share. Both MBK Partners and Young Poong have raised their offer price for the second time, matching Korea Zinc's rival offer.
The battle for control of Korea Zinc is not just a corporate power struggle but also has wider implications for South Korea's capital markets and national interests. Minority shareholders, who play a crucial role in the outcome of the takeover battle, will have to decide between competing offers.
In the midst of heightened U.S.-China trade tensions, concerns over securing supply chain control are mounting. South Korea's industry ministry is set to hold a meeting to discuss designating Korea Zinc's battery component technology as a national core technology. This move could impact foreign acquisitions and safeguard national interests.
Overall, the takeover battle for Korea Zinc highlights the intersection of corporate governance, national interests, and global supply chain dynamics. Investors and stakeholders need to closely monitor the developments to understand the potential impact on their finances and the broader market.