By Kwanwoo Jun


Volatility in Korea Zinc shares ebbed after South Korean private-equity firm MBK Partners said it wouldn't raise its offer further for the world's largest zinc smelter.

Korea Zinc shares were fleeting between tiny gains and losses in Thursday trading. They were recently 0.1% lower at 775,000 won, equivalent to $575.08, compared with last week's 9.1% gain and a 29% surge in September. The benchmark Kospi was 0.5% higher Thursday.

Volatility in the stock eased after MBK, which is seeking to acquire a controlling stake in Korea Zinc, said Wednesday that it won't raise its offer further after doing so for a second time in less than a month already in order to match a rival bid.

MBK's latest offer was set at 830,000 won apiece, about 7% higher than Thursday's trading price. That would value the company at around $12.75 billion.

MBK said the current offer provides existing shareholders a "significant premium" while reflecting a "fair valuation" for the company. The private-equity firm is locked in a takeover battle for Korea Zinc against a tie-up between Korea Zinc and U.S. private-equity firm Bain Capital.

Further price competition above the current offer could hurt Korea Zinc's financial health, which could undermine its business competitiveness globally, MBK said in a statement. The investment firm also said it would guarantee job security for Korea Zinc employees in the event of a takeover, and reiterated an earlier pledge not to sell the smelter to the Chinese.

MBK, a homegrown buyout company with around $30 billion in assets under management, said it would continue with a legal fight against the partially debt-financed share buyback by Korea Zinc that seeks to thwart MBK's takeover bid. MBK's tender offer runs until Oct. 14.

Korea Zinc said Thursday that a local court had already ruled against MBK's challenge to its stock repurchase.

Earlier this week, South Korea's financial watchdog said it would look into any potential unfair trading practices around the takeover tussle for Korea Zinc.


Write to Kwanwoo Jun at kwanwoo.jun@wsj.com


(END) Dow Jones Newswires

10-10-24 0115ET