SEOUL (Reuters) - A South Korean court struck down on Wednesday a request by zinc producer Young Poong to block Korea Zinc from buying out its own shares to counter Young Poong's tender offer, the Seoul Central District Court said.Last month, private equity fund MBK Partners and South Korea's Young Poong launched a 2 trillion won ($1.5 billion) tender offer for shares in Korea Zinc, which the target called a "hostile" takeover attempt. They last week raised the offer to 2.3 trillion won.
Since it was founded in 1949, Young Poong Group has been run by the family of the two founders of the company, who were born in North Korea. But a management battle has been brewing between family members in recent years.
Young Poong, known for its bookstore chains in Korea, also produces zinc used in cars and home appliances and buildings and makes parts for smartphones and chip packaging for Samsung Electronics and other customers.
Korea Zinc, which is the world's largest zinc smelter and also supplies gases for chip manufacturing, is expected to issue a regulatory filing on Wednesday following media reports of the planned buy back of its shares.
(Reporting by Hyunsu Yim and Heekyong Yang; Editing by Ed Davies)
