[Special Stock] Korea Zinc's Stock Price Rises on Possibility of 'Counter Tender Offer'

On the 19th, the stock price of Korea Zinc is expanding its gains in the stock market. This comes amid speculation that Choi Yoon-beom, chairman of Korea Zinc, may launch a higher-priced tender offer to counter MBK Partners and advisor Jang Hyung-jin (on the MBK side).

As of 11:12 a.m. that day, Korea Zinc's stock was trading at 698,000 won, up 4.80% from last Friday's closing price. It started with a slight rise in the early session and then expanded its gains. The stock price soared well above MBK's tender offer price of 660,000 won, reaching about 40,000 won higher than the tender offer price.

This is due to the possibility of a counter tender offer by Chairman Choi Yoon-beom, who is at risk of losing management rights. Initially, it was expected that Chairman Choi would not be able to make a counter tender offer under the Capital Markets Act, but it is now known that a tender offer is possible as the special relationship between the two sides has been resolved.

Jang Jae-hyuk, an analyst at Meritz Securities, explained, "Korea Zinc is a special related party of Youngpoong and cannot acquire treasury shares during the tender offer period under the Capital Markets Act," adding, "The Choi family was designated as a special related party with the Jang family due to their partnership, but this partnership has officially ended with this tender offer, allowing the Choi family to purchase Korea Zinc shares."

However, questions remain as to whether Chairman Choi's side has sufficient financial resources to carry out a counter tender offer.