Korea Zinc Inc. said Wednesday it plans to make a counteroffer to buy back and cancel its own shares to fend off a tender offer by private equity firm MBK Partners and Young Poong, the biggest shareholder of the world’s largest zinc smelter.
The widely expected move by Korea Zinc came shortly after a Seoul court dismissed an injunction requested by Young Poong, allowing the company to buy its own shares.
In a statement, Korea Zinc hailed the court’s ruling, saying it confirms the company’s plan to buy its own shares as a “legitimate act” to thwart a “hostile M and A” by MBK and Young Poong.
MBK, in cooperation with Young Poong, raised last week its original tender offer price for Korea Zinc to 750,000 won (US$568) per share from 660,000 won.
Media reports have speculated that Korea Zinc may buy back its own shares for more than 800,000 won per share.
Source: Yonhap News Agency