Korea Zinc shares soar 30% amid prolonged ownership fight
(Korea Zinc)
Shares of Korea Zinc, the world’s largest zinc smelter, jumped almost 30 percent on Thursday amid speculation that the prolonged power struggle between the current management and the MBK Partners-Young Poong coalition could push the share price up further in the coming weeks.
The shares of Korea Zinc closed at 1.13 million won ($825), up 262,000 won or 29.91 percent from the previous day, hitting the upper circuit limit.
The uptick comes after the tender offer of the current management closed Wednesday when the stock closed at 876,000 won, lower than the tender offer of 890,000 won.
Korea Zinc was one of only two stocks, together with Samsung Biologics, that exceeded the 1 million won bar during Thursday’s trading.
Korea Zinc’s market cap also soared to 23.56 trillion won, becoming the 14th largest company listed on the main bourse Kospi. On Sept. 13 when the ownership dispute started, its market cap remained at about 10 trillion won.
Shares of Young Poong Precision, a key player in the ongoing proxy fight that owns a 1.85 percent stake in Korea Zinc, also reached the 30 percent upper limit to close at 26,000 won.
Korea Zinc did not release the result of the treasury share buyback campaign as of press time. The management, led by Chairman Choi Yun-beom, is estimated to have secured up to a 36.49 percent stake in the company, including those acquired by its financial ally Bain Capital.
The MBK-Young Poong coalition, in the meantime, has secured an almost 38 percent stake in Korea Zinc so far.
With both sides seemingly failing to secure a majority stake, their battle is expected to be extended to floor trading, possibly driving up share prices for some time.
