Shares of Korea Zinc Inc. jumped Monday after a local court again dismissed an injunction requested by Young Poong Corp. to bar the world’s largest zinc smelter from buying back its own shares.

The Seoul Central District Court rejected an injunction request made by Young Poong to prevent Korea Zinc from acquiring its own shares during the public tender offer period, which ends Wednesday.

Shares of Korea Zinc jumped 6.43 percent to close at 877,000 won (US$648).

It was the second time that a court struck down a request by Young Poong to bar Korea Zinc from buying back its own shares to defend a public tender offer by Young Poong and private equity firm MBK Partners.

Last week, MBK and Young Poong said they have secured a 5.34 percent stake in Korea Zinc in a multibillion-dollar tender offer to take control of the world’s largest zinc smelter.

On Sept. 12, MBK, in partnership with Young Poong, announced its intention to acquire a stake of up to 14.61 percent in Korea Zinc. Since then, the coalition has ra
ised its offer price twice to 830,000 won a share.

The coalition held a combined 33.1 percent stake in Korea Zinc before it submitted the tender offer.

In response, Korea Zinc launched a counteroffer to buy back its own shares at a higher price, initially at 830,000 won per share and later increasing it to 890,000 won.

In the counteroffer, Korea Zinc plans to repurchase its treasury stocks by Oct. 23 for cancellation to enhance shareholders’ value. The company aims to secure up to 20 percent of treasury shares at 890,000 won a share.

Source: Yonhap News Agency