The fierce battle for control of Korea Zinc Co., the world’s largest zinc smelter, is approaching a critical deadline that could reshape the company’s future. Investors have until the end of Monday to decide whether to accept an 830,000 won-per-share takeover offer from a consortium led by Korea Zinc’s largest shareholder, Young Poong Corp., and North Asia’s private equity giant MBK Partners. The consortium has stated there will be no further price increases.
Competing with this offer is a higher 890,000 won-per-share buyback plan launched by Korea Zinc Chairman Choi Yun-Beom, backed by Bain Capital. Valuing the company at 18.4 trillion won ($13.6 billion), Choi’s buyback aims to fend off the unsolicited bid. Despite the higher offer, the stock is trading well below that level, signaling investor doubts.
The outcome of this high-stakes battle could have global implications. Korea Zinc controls about 12% of refined zinc production outside China, playing a crucial role in the supply of energy-transition metals. Zinc is vital for galvanizing steel and is used in solar panels, wind turbines, and battery technologies.
The feud between Choi and the rival Chang family, which controls Young Poong, reflects deeper disagreements over the company’s direction, particularly its role in the global green economy transition. As the saga unfolds, the decision investors make today could determine the future of this key industry player.