MBK Partners says no plan to sell Korea Zinc to China

SEOUL, Sept. 18 (Yonhap) -- Private equity firm MBK Partners said Wednesday it has no plans to sell Korea Zinc Inc. to China after acquiring a stake in the world's largest zinc smelter.

MBK Partners announced last week that it will acquire shares in Korea Zinc through a tender offer, aiming to secure a 15 percent stake in the company with a budget of 2 trillion won (US$1.5 billion).

The equity firm said the share purchase was agreed upon with Young Poong, the largest shareholder of Korea Zinc, which holds a 33 percent stake.

For decades, Korea Zinc and Young Poong had maintained a partnership, but the two companies have been at odds over a management dispute since 2022.

"We cannot and will not sell Korea Zinc, a key national industrial company, to China," MBK Partners Vice President Kim Kwang-il told Yonhap News Agency.

"We are well aware that Korea Zinc is central to process manufacturing, and the experience and knowledge of its employees are very important," he added.

Kim emphasized that the share purchase is aimed at improving governance at Korea Zinc, in collaboration with Young Poong.

Since MBK Partners announced its tender offer plan last week, public concerns have arisen that the equity firm, which some claim is influenced by Chinese capital, might sell the Ulsan-based company to a foreign buyer to seek profit.

Meanwhile, Korea Zinc has strongly opposed MBK Partners' share purchase, 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 family manages Korea Zinc, while the Chang family is in charge of Young Poong and other electronic parts affiliates.

Since Choi Yun-beom, the grandson of the co-founder Choi Ki-ho, took office as chairman of Korean Zinc in 2022 and expressed his determination to separate his company from Young Poong, the two families have been locked in a battle for control of the company.

brk@yna.co.kr
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