Supreme Court upholds order requiring MBK and Young Poong to submit management cooperation agreement

South Korea’s Supreme Court has kept in place an order requiring MBK Partners and Young Poong to submit their management cooperation agreement in the dispute over control of Korea Zinc.

The Supreme Court’s Civil Division 1 dismissed without a full hearing a further appeal filed by Chang Hyung-jin, an adviser to Young Poong. KZ Precision said the decision was made on the 18th of last month and announced on the 1st.

The case stems from an agreement signed as MBK Partners and Young Poong pursued a tender offer for Korea Zinc shares last year. MBK established a special-purpose company, Korea Corporate Investment Holdings, for the offer. The company, Young Poong, and Chang signed a basic management cooperation agreement on September 12, 2024.

Disclosed terms said Young Poong and related parties would exercise voting rights attached to their Korea Zinc shares with the consent of Korea Corporate Investment Holdings. The agreement also provided for the company to have one more Korea Zinc director nominee than Young Poong. It granted the company a call option, a right of first refusal, and a right to demand a joint sale of Young Poong’s Korea Zinc shares.