KUALA LUMPUR, Sept 8 (Bernama) -- Bursa Malaysia closed almost flat on Tuesday as buying interest rotated away from index heavyweights towards smaller-cap construction stocks, with sentiment affected by geopolitical uncertainty, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 0.39 of a point to 1,714.40 from Monday’s close of 1,714.79. The benchmark index opened 1.65 points lower at 1,713.14 and moved between 1,710.44 and 1,714.50 throughout the trading session. The broader market was almost evenly balanced, with decliners leading gainers 548 to 546, while 598 counters were unchanged, 1,107 were untraded and 25 were suspended. Turnover expanded to 4.13 billion units valued at RM3.14 billion from 3.60 billion units valued at RM2.45 billion on Monday.
The intense battle for control of Korea Zinc Co, Ltd, the world’s largest zinc smelter, is nearing a critical juncture as investors face a deadline to decide on competing offers. Investors have until the end of Monday to accept a takeover offer of 830,000 won (US$2,629) per share from a consortium led by Korea Zinc’s largest shareholder, Young Poong Corp, and MBK Partners, a prominent private equity firm in North Asia. The consortium has stated there will be no further increases to the offer.
However, an alternative bid has emerged from Korea Zinc’s chairman, Choi Yun-Beom, supported by buyout firm Bain Capital, with a higher buyback offer of 890,000 won per share, a 7% premium, valuing the company at 18.4 trillion won (US$13.6 billion). Despite the higher bid, investor skepticism remains, as Korea Zinc's stock has traded below this level, closing at 794,000 won on Friday.
The outcome of this succession feud will have far-reaching implications beyond South Korea. Korea Zinc controls around 12% of the world’s refined zinc supply outside China, making it crucial for the diversification of energy-transition metals, especially as zinc is used in galvanizing steel and renewable energy applications like solar panels and wind turbines.
The struggle for control centers on the future direction of the company. Choi, the grandson of one of the founders, aims to shift Korea Zinc towards the green economy, aligning with global energy transition goals by striking deals with South Korean conglomerates such as Hyundai Motor Group, Hanwha Group, and LG Chem Ltd. His vision contrasts with the rival faction, led by Young Poong, which prioritizes dividends and the company’s traditional non-ferrous metals business.
This power struggle, heightened by MBK’s involvement, has pushed Korea Zinc’s stock to new records, leading South Korea’s financial watchdog to warn against potential unfair trade practices in the increasingly heated dispute.
The conclusion of this saga will not only determine the future leadership of Korea Zinc but also influence its role in the global shift toward a greener economy.
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