In a strategic move to fend off a potential takeover, Korea Zinc Co. has executed a significant share buyback, resulting in Chairman Choi Yun-beom and Bain Capital acquiring an additional 11% of the company's shares. This buyback initiative was launched in response to a takeover attempt by Young Poong Corp. and MBK Partners, which had gained control of approximately 38% of Korea Zinc's shares prior to the buyback [6c88e55a].
The buyback saw participation from shareholders representing 9.85% of the company, while Bain Capital successfully acquired 1.41% of the shares. Korea Zinc had aimed to repurchase up to 20% of its shares, demonstrating a proactive approach to maintaining control amidst external pressures [6c88e55a].
Before the buyback, Chairman Choi enjoyed the backing of around 34% of shareholders, highlighting the competitive dynamics at play within the company. The expiration of Young Poong and MBK's offer earlier this month has intensified the focus on shareholder sentiment and corporate governance within Korea Zinc [6c88e55a].
This development is part of a broader trend in the market where companies are increasingly resorting to buybacks as a defensive strategy against hostile takeovers, reflecting a shift in corporate strategies in the face of aggressive acquisition attempts [6c88e55a].