YP-MBK Partners attempt to acquire Korea Zinc's management rights…Hostile M&A dispute intensifies

Young Poong (YP) has officially launched a tender offer for Korea Zinc's management rights in collaboration with private equity firm MBK Partners, intensifying the management dispute between the two sides.

Korea Zinc has strongly opposed the move, labeling it a hostile and predatory takeover attempt.

YP and MBK Partners announced their plan to conduct a tender offer for approximately 7-14.6% of Korea Zinc’s shares at a price of 660,000 KRW per share, from September 13 to October 4.

Through this tender offer, YP has made its intention clear to secure stable control over Korea Zinc's management rights.

If the tender offer is successful, the total purchase amount is expected to reach approximately 2 trillion KRW.

However, Korea Zinc immediately objected. The company criticized the tender offer as a hostile M&A orchestrated unilaterally by YP in collusion with MBK Partners, which they referred to as corporate raiders. Korea Zinc expressed its official opposition to the deal.

Korea Zinc accused YP of focusing solely on securing management rights without addressing the environmental pollution and serious accidents stemming from the operation of its Sukpo smelter.

Additionally, Korea Zinc warned of the possibility that MBK Partners could resell the company to foreign capital after acquiring management rights, raising concerns over the potential leakage of core technologies related to national key industries.

As YP and MBK Partners present long-term management plans, the attempt to acquire management rights through this tender offer is expected to bring the management dispute into a new phase.