Court strikes down Young Poong request to bar Korea Zinc from buying back its shares (updated)

YoungPoong

02/10/2024 01:55

(Changes sourcing, adds background on Young Poong and MBK's
takeover attempt in paragraphs 2-5)
       SEOUL, Oct 2 (Reuters) - A South Korean court struck
down on Wednesday a request by zinc producer Young Poong
 000670.KS  to block Korea Zinc  010130.KS  from buying out its
own shares to counter Young Poong's tender offer, the Seoul
Central District Court said.
    Last month, private equity fund MBK Partners and South
Korea's Young Poong  000670.KS  launched a 2 trillion won ($1.5
billion) tender offer for shares in Korea Zinc, which the target
called a "hostile" takeover attempt. They last week raised the
offer to 2.3 trillion won. 
        Since it was founded in 1949, Young Poong Group has been
run by the family of the two founders of the company, who were
born in North Korea. But a management battle has been brewing
between family members in recent years.
  
        Young Poong, known for its bookstore chains in Korea,
also produces zinc used in cars and home appliances and
buildings and makes parts for smartphones and chip packaging for
Samsung Electronics and other customers. 
  
    Korea Zinc, which is the world's largest zinc smelter and
also supplies gases for chip manufacturing, is expected to issue
a regulatory filing on Wednesday following media reports of the
planned buy back of its shares.

 (Reporting by Hyunsu Yim and Heekyong Yang
Editing by Ed Davies)
 ((Hyunsu.Yim@thomsonreuters.com;))