Korea Zinc raises stock buyback price to defend management control

(Yonhap)

Korea Zinc Co. raised the price of its ongoing stock buyback offer on Friday from 830,000 won to 890,000 won in an effort to defend its management control.

The company also expanded the share buyback volume from about 15.5 percent, or 3,209,009 shares, to about 17.5 percent, or 3,623,075 shares, of the total issued shares.

In a disclosure with the Financial Supervisory Service, Korea Zinc updated the details. The total funds Korea Zinc will invest in the share buyback have been raised from about 2.7 trillion won to 3.2 trillion won.

Friday was the last day that Korea Zinc can modify the terms of the buyback, which is scheduled to end on October 23.

Despite warnings from the FSS Governor Lee Bok-hyun about potential over-competition and market overheating, the board moved forward with the price increase.

On September 13, the Young Poong-MBK Partners consortium launched a tender offer to acquire control of Korea Zinc, offering 660,000 won per share.

Korea Zinc’s stock price, however, hovered around 660,000 won and the consortium raised the offer price to 750,000 won on September 26.

On October 2, Korea Zinc Chairman Choi Yoon-beom unveiled plans of a share buyback at 830,000 won, which triggered the Young Poong-MBK Partners consortium to raise its tender offer price to 830,000 won on October 4.