Korea Zinc Outside Directors Oppose MBK's Hostile M&A...Damage to Corporate Value

"Hostile M&A by Private Equity Targeting Korea Zinc"

All seven outside directors of Korea Zinc have stated their opposition, defining MBK Partners, a private equity fund, attempt to acquire management rights of Korea Zinc as a 'hostile takeover (M&A)'.

In a statement released on the 21st, the outside directors of Korea Zinc said, "The management of Korea Zinc has practiced principled management by actively accepting sound monitoring and checks from outside directors," and added, "Regarding Youngpoong's public tender offer in collaboration with the private equity fund, all outside directors unanimously oppose it from the perspective of shareholders' interests."

They argued, "The public tender offer attempts by MBK and Youngpoong constitute a hostile M&A by a private equity fund targeting Korea Zinc, a key company in the non-ferrous metals sector with the world's number one market share in national core industries and a core raw material supplier in the secondary battery supply chain," and warned, "This will severely damage Korea Zinc's corporate value."

The outside directors further stated, "From the perspective of protecting shareholder interests, we will monitor and support the current management of Korea Zinc to enhance shareholder value through various shareholder return policies," and added, "We must protect this national company, which should grow for the benefit of all shareholders including minority shareholders, from speculative capital."