Chang Hyung-jin, adviser of Young Poong Corp., speaks in an interview with Yonhap News Agency over a tender offer to buy Korea Zinc Inc. at the company's building in central Seoul, Tuesday. (Yonhap)
The adviser of Young Poong Corp., the biggest shareholder of Korea Zinc Inc., on Tuesday defended Young Poong's joint tender offer to buy the top zinc smelter with private equity firm MBK Partners as an attempt to save the company.
Chang Hyung-jin, son of Young Poong co-founder Chang Byung-hee, made the remark in a rare interview with the local wire Yonhap News Agency, as a management conflict flared up over the share purchase plan, which Korea Zinc has strongly protested as a "hostile takeover bid."
In collaboration with Young Poong, MBK Partners has announced plans to acquire up to a 14.6 percent stake in Korea Zinc through a 2 trillion-won ($1.5 billion) tender offer, a move which a top executive of Korea Zinc has called "predatory behavior."
Currently, Young Poong holds a 33 percent stake, while Korea Zinc and its owner family own a combined 18 percent.
"Our fathers' generation established Korea Zinc but that doesn't mean it has to be run by us," Chang said. "Whoever becomes the owner, I hope that Korea Zinc will eternally prosper."
Non-ferrous metals manufacturer Korea Zinc was co-founded in 1974 by Chang Byung-hee and Choi Ki-ho. Since then, the Choi family manages Korea Zinc, while the Chang family is in charge of Young Poong Group and other electronic parts affiliates.
Since Choi Yun-beom, the grandson of the co-founder Choi Ki-ho, took office as chairman of Korean Zinc in 2022 and expressed his determination to separate his company from Young Poong, the two families have been locked in a battle for control of the company.
Chang denied views that the tender offer is a hostile takeover bid.
"Is it hostile because we joined hands with them? I am not hostile. I am a person who has tried to revive Korea Zinc and I am trying to set an example once again," he said.
Asked whether the possibility of the stake sale to a company rather than a private equity firm was considered, Chang said MBK Partners appeared to be the sole entity with sufficient funds.
"The decision was made based on the assessment that the company is considerably exemplary, forward-looking and reliable," he said, adding the alliance with MBK Partners was suggested by the Young Poong management.
Chang acknowledged that there was a "subtle" difference of opinion between himself and Choi on managing Korea Zinc, but declined to elaborate, saying he is speaking only as a shareholder of Korea Zinc.
Still, Chang stressed that even if the tender offer for Korea Zinc succeeds, its system and ongoing businesses should be sustained. (Yonhap)
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