Korea Zinc chief launches counter-tender offer to secure stakes

Chairman Choi Yoon-beom

The dispute between the Chang and Choi families, the two key stakeholders in Korea Zinc Co., over management control of the South Korean non-ferrous metal smelting company, continues to escalate.

Maeil Business Newspaper learned on Sunday that Korea Zinc Chairman Choi Yoon-beom decided to launch a counter-tender offer to secure stakes in both the company and Young Poong Precision Corp. and is coordinating the relevant timetable.

“We have been preparing a response since Young Poong Co. and MBK Partners announced their tender offer plan,” a key source close to Choi said.

An industry insider also noted that Choi recently secured collaborative partners at home and abroad to support his efforts.

“He has been in contact with U.S.-based partners as well as domestic ones, and the method of collaboration is currently under discussion,” the insider said.

Choi is leveraging his global partners and business connections, built around Korea Zinc’s new business initiative ‘Troika Drive,’ to find a breakthrough, according to sources. He recently visited companies including Japan’s general trading company Sumitomo Corp. and firms based in the Asia-Pacific region.

France’s Trafigura Group Pte., one of the world’s top three raw material trading companies and a partner in Korea Zinc’s nickel business, is also expected to support Choi.

With eight business days remaining in Young Poong’s tender offer, there is speculation that the current situation will be shaken up if Choi steps in.