Non-public fairness agency MBK Companions mentioned Wednesday it has no plans to promote Korea Zinc Inc. to China after buying a stake on this planet’s largest zinc smelter.
MBK Companions introduced final week that it’s going to purchase shares in Korea Zinc by means of a young supply, aiming to safe a 15 p.c stake within the firm with a price range of two trillion gained ($1.5 billion).
The fairness agency mentioned the share buy was agreed upon with Younger Poong, the biggest shareholder of Korea Zinc, which holds a 33 p.c stake.
For many years, Korea Zinc and Younger Poong had maintained a partnership, however the two corporations have been at odds over a administration dispute since 2022.
“We can’t and won’t promote Korea Zinc, a key nationwide industrial firm, to China,” MBK Companions Vice President Kim Kwang-il informed Yonhap Information Company.
“We’re nicely conscious that Korea Zinc is central to course of manufacturing, and the expertise and information of its workers are essential,” he added.
Kim emphasised that the share buy is aimed toward bettering governance at Korea Zinc, in collaboration with Younger Poong.
Since MBK Companions introduced its tender supply plan final week, public issues have arisen that the fairness agency, which some declare is influenced by Chinese language capital, would possibly promote the Ulsan-based firm to a international purchaser to hunt revenue.
In the meantime, Korea Zinc has strongly opposed MBK Companions’ share buy, calling it a hostile takeover bid.
Korea Zinc was co-founded in 1974 by Chang Byung-hee and Choi Ki-ho. Since then, the Choi household manages Korea Zinc, whereas the Chang household is answerable for Younger Poong and different digital components associates.
Since Choi Yun-beom, the grandson of the co-founder Choi Ki-ho, took workplace as chairman of Korean Zinc in 2022 and expressed his willpower to separate his firm from Younger Poong, the 2 households have been locked in a battle for management of the corporate. (Yonhap)
