Korea Zinc shares surge after court clears hurdle for tender offer
SEOUL, Oct 21 (Reuters) -A South Korean court on Monday rejecteda legal bid to block Korea Zinc 010130.KS from proceeding with its tender offer to buy shares in the company, pushing up shares in the world's biggest zinc refiner by more than 6%.
The South Korean company's two co-founding families have been in a bitter battle for control of the metals giant whose biggest shareholder Young Poong 000670.KS joined hands with private equity fund MBK Partners in an attempt to acquire a controlling stake in the company in September.
Earlier this month, Korea Zinc, with the help of Bain Capital, offered to buy back about 3.6 trillion won ($2.63 billion) worth of its shares to fend off what it called a hostile takeover attempt.
Seoul Central District Court on Monday rejected a request by MBK Partners to stop Korea Zinc from making a tender offer.
Korea Zinc shares surged 6.2% to 875,000 won, close to the tender offer price of 890,000 won by Korea Zinc. The offer closes on Wednesday.
MBK and Young Poong have secured a more than 5% stake in Korea Zinc through their tender offer, paving the way for a battle for boardroom control at an upcoming shareholder meeting. ($1 = 1,367.7700 won)
Reporting by Hyunjoo Jin, Additional reporting by Hyonhee Shin and Jihoon Lee
Editing by Ed Davies
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