Korea Zinc shares surge as MBK Partners’ tender offer nears expiration

Korea Zinc shares are showing strong gains on Friday morning as a tender offer by private equity firm MBK Partners to gain a controlling stake in the world’s largest zinc smelter is set to expire Friday.

Korea Zinc's headquarters in Jongno District, central Seoul, on Wednesday [YONHAP]

Korea Zinc shares are showing strong gains on Friday morning as a tender offer by private equity firm MBK Partners to gain a controlling stake in the world’s largest zinc smelter is set to expire Friday.

As of 9:45 a.m. Friday, Korea Zinc's shares were priced at 758,000 won ($568), up 6.17 percent from the previous day. At one point in the morning, the shares jumped by 8.5 percent to 774,000 won.

MBK Partners, in cooperation with Young Poong, the largest shareholder of Korea Zinc, raised its original tender offer price for Korea Zinc last week to 750,000 won per share, up from 660,000 won.

Korea Zinc Chairman Choi Yun-beom speaks at a press conference held at the Grand Hyatt hotel in Yongsan District, central Seoul, on Wednesday. [YONHAP]

However, Korea Zinc Chairman Choi Yun-beom made a rare counteroffer on Wednesday, stating that the company decided to repurchase and cancel its own shares at a price of 830,000 won per share, starting Friday through Oct. 23. U.S. investment company Bain Capital is participating as a financial investor in the smelter’s buyback of shares.

BY KIM JEE-HEE [kim.jeehee@joongang.co.kr]