The Korea Zinc headquarters (Image courtesy of Yonhap)
SEOUL, Nov. 18 (Korea Bizwire) – The government has designated Korea Zinc Co.’s high-nickel precursor manufacturing technology as a national core technology amid a tussle for control of the world’s biggest refined zinc producer, according to the company Monday.
Korea Zinc has been in a monthslong battle to fend off a takeover bid by its largest shareholder Young Poong Corp. and private equity fund MBK Partners Ltd. The Young Poong side initiated the takeover battle on Sept. 13 by launching a tender offer for an additional stake in Korea Zinc.
In response, Korea Zinc called on the government to add its high-nickel precursor technology to the list of national core and national high-tech strategic technologies, a company spokesperson said by phone.
The designation as core and strategic technologies gives the government the approval rights in case of an acquisition of Korea Zinc by a foreign company due to its core technologies.
The designation by the industry ministry came days after Korea Zinc scrapped its 2.5 trillion-won (US$1.8 billion) share sale plan taken issue with by the Financial Supervisory Service. The regulator cited a lack of details in the decision-making process could damage the interests of existing shareholders.
The rights issue plan was widely seen as part of Korea Zinc’s efforts to secure more treasury stocks with voting rights to win the takeover battle with the Young Poong camp.
Currently, Young Poong and MBK collectively own a 39.83 percent stake in Korea Zinc, while Korea Zinc Chairman Choi Yun-beom and related parties hold a 35.4 percent stake in the smelter.
Korea Zinc, with the support of Bain Capital, plans to hold a shareholders meeting within this year to end the battle, with focus on drumming up support from its shareholders, such as the National Pension Service, Hyundai Motor Group and Hanwha Group.
High-nickel precursors are crucial in the manufacturing of battery cathodes, which are essential for electric vehicles and energy storage systems.
(Yonhap)
