Private equity firm MBK Partners and Young Poong raised their tender offer price for shares in top non-ferrous metal smelter Korea Zinc to 750,000 won per share, up from 660,000 won initially, they said in a regulatory filing.
The move makes the tender offer now worth as much as 2.3 trillion won ($1.7 billion), according to Reuters calculations.
On Wednesday, Korea Zinc shares closed at 704,000 won.
The tender offer ends on Oct. 6, with the last trading day on Oct. 4.
Young Poong is already Korea Zinc’s largest shareholder, with a 25.4% stake as of end-June.
The current management at Korea Zinc, which has deemed the tender offer a “hostile” takeover attempt, is working to secure support from various parties, officials said. They declined to confirm the parties.
An analysis by Meritz Securities showed that as of early September Young Poong and investors supportive of it controlled a 33.13% stake, while Korea Zinc’s current management and supportive investors controlled a 33.99% stake.
($1 = 1,333.2900 won)
Reuters