A significant shift in Korea Zinc’s shareholder structure has occurred, as private equity powerhouse Bain Capital has divested its entire stake in the company to Meritz Financial Group. This move concludes Bain Capital’s roughly 18-month tenure as a crucial ally for Korea Zinc Chairman Choi Yoon-beom, according to Thursday’s reports from investment banking sources.
Bain Capital executed a block deal pre-market, offloading 419,082 shares, which constitutes a 2.01 percent ownership stake in Korea Zinc. The transaction valued these shares at approximately 10 percent below the prior day’s closing price of over 1.47 million won ($992) per share, bringing the total deal value to an estimated 500 billion won.
This strategic transaction redefines Korea Zinc’s shareholder alignment, introducing Meritz Financial Group as a new “white knight” and fortifying Chairman Choi’s friendly stake base.
Previously, Bain Capital acquired its stake as a core component of Chairman Choi Yoon-beom’s defense strategy against a formidable takeover bid from Young Poong and MBK Partners. The initial agreement included a guaranteed annual return of approximately 13 percent for Bain Capital, contingent upon Choi’s eventual share repurchase.
The current deal is understood to honor the terms of that original structure. The final price, which accounts for compounded returns and associated costs accumulated over the approximately 18-month holding period, reached the aforementioned 500 billion won.
Under the new arrangement, Meritz Financial Group anticipates a projected return of around 6 percent. Meritz has a history of supporting Korea Zinc, notably providing 1 trillion won through a private bond purchase in 2024 to bolster Chairman Choi’s corporate defense initiatives.
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