A top executive of Korea Zinc Inc. said Tuesday the world’s largest zinc smelter would make all-out efforts to thwart a tender offer by private equity firm MBK Partners and Young Poong Corp., calling the tender offer “predatory behavior.”

Korea Zinc Vice Chairman Lee Je-joong made the remarks as a battle escalated over the smelter’s management control between Chairman Choi Yun-beom and Young Poong, the biggest shareholder of Korea Zinc.

In collaboration with Young Poong, MBK Partners has announced plans to acquire up to a 14.6 percent stake in Korea Zinc through a 2 trillion-won (US$1.5 billion) tender offer.

Describing the tender offer as an attempt to pocket “only money,” Lee told reporters that Korea Zinc “will absolutely not accept this predatory behavior.”

“If MBK Partners takes over Korea Zinc, our core technology will be leaked overseas and the Republic of Korea’s industrial competitiveness will collapse,” Lee said, referring to the nation’s official name. “All executives and employees of Korea Zi
nc will surely thwart this hostile M and A,” Lee said.

Currently, Young Poong holds a 33 percent stake, while Korea Zinc and its owner family collectively own 18 percent.

MBK Partners has said it has no plans to sell Korea Zinc to China after acquiring a stake.

However, Lee said he “doesn’t believe” it, as China accounts for half of the world’s production of nonferrous metals.

Korea Zinc and Young Poong Corp. have a long-standing partnership, dating back to when the former was co-founded in 1974 by Chang Byung-hee and Choi Ki-ho. Over the years, the Choi family has managed Korea Zinc, while the Chang family oversees Young Poong Group and its affiliates.

However, a management dispute has strained the relationship between the two companies since 2022.

Source: Yonhap News Agency