Private equity firm Bain Capital has sold its entire stake in Korea Zinc to Meritz Financial Group, ending its role as a key backer of Chairman Choi Yoon-beom after about 18 months, according to investment banking sources on Thursday.

Bain Capital offloaded 419,082 shares, or a 2.01 percent stake, in a block deal before the market opened. The shares were sold at a roughly 10 percent discount to the previous day’s closing price of over 1.47 million won ($992) per share, with the total deal size estimated at around 500 billion won.

The transaction marks a shift in Korea Zinc’s shareholder alignment, with Meritz Financial Group stepping in as a new “white knight” while maintaining Choi’s friendly stake base.

Bain Capital had acquired the stake as part of Choi’s counteroffer against a takeover attempt by Young Poong and MBK Partners. Under the agreement, Bain was guaranteed an annual return of around 13 percent if Choi repurchased the shares.

The latest deal is understood to reflect that structure, with the final price — including compounded returns and related costs over roughly 18 months — reaching about 500 billion won.

Meritz Financial is expected to secure a lower return of around 6 percent under the new arrangement. The group has previously supported Korea Zinc, including a 1 trillion won private bond purchase in 2024 to help fund Choi’s defense strategy.

By Im Eun-byel (silverstar@heraldcorp.com)