The alliance of MBK Partners and Young Poong took the lead in the power struggle over Korea Zinc, the world's largest zinc smelter, securing an additional 5 percent stake in the company on Monday. Yet with Korea Zinc's separate tender offer lingering on the table, the conflict is likely to evolve into a prolonged proxy fight.

The MBK-Young Poong coalition was able to secure over 5 percent stake in Korea Zinc through a tender offer that concluded Monday. Combined with the existing 33.1 percent stake owned by Young Poong and the Chang ownership family, the alliance has secured over 38 percent stake in Korea Zinc. It has control of nearly half of the total shares with voting rights.

"Today will be an important milestone for Korea's capital market," MBK said in a statement. It added it will put in all efforts to halt Korea Zinc Chairman Choi Yun-beom's share buyback plan.

The offer for Korea Zinc from the coalition of MBK Partners and Young Poong aimed to secure up to a 14.61 percent stake in the company at a price of 830,000 won ($611) per share. The tender offer did not reach the maximum.

The alliance’s separate tender offer for Korea Zinc’s key affiliate Young Poong Precision, set at 30,000 won per share, ended in failure. The alliance had to secure a minimum of 29 percent stake in the company, but the subscription rate was much lower.

More detailed results of the tender offers will be released through a regulatory filing to be made Thursday.

With the campaigns launched by MBK and Young Poong having come to an end, eyes are on the offers made by Korea Zinc's current management, led by Chairman Choi.

Korea Zinc, joined by big-name private money firm Bain Capital, suggested 890,000 won each in an offer to purchase up to 20 percent of the shares -- 60,000 won higher than the price offered by the rival faction.

Its offer for Young Poong Precision is 35,000 won per share, 5,000 won higher the contending option. The offers for Korea Zinc and its affiliate are to end on Oct. 23 and Oct. 21, respectively.

Korea Zincs shareholders could accept the tender offer led by Choi, as the company's share price is lower than that offered. Shares of Korea Zinc closed at 793,000 won, down 1,000 won, or 0.13 percent, from the previous trading day. Young Poong Precision's stock price stood at 30,750 won as of closing, marking a gain of 1,550 won, or 5.31 percent.

Yet, of the potential 20 percent stake sought by Korea Zinc and Bain Capital, only a 2.5 percent stake would come with voting rights, as the other 17.5 percent would be in treasury stocks.

If the ongoing competition for a stake in Korea Zinc does not yield a tangible result, the dispute will likely evolve into a proxy fight and stretch out for a while, according to market watchers.

The next Korea Zinc shareholders meeting is slated to take place in March. The involved parties could alternatively hold an extraordinary shareholders meeting in the meantime.