Public Tender Offer Statement Released
"To Strengthen Goryeo Ayun's Management Rights and Restore Normal Management"
Youngpoong stated on the 23rd that the public tender offer for Korea Zinc shares is "not a hostile M&A (mergers and acquisitions) or predatory M&A at all, but rather an effort to strengthen management rights and normalize management as the largest shareholder."
In a statement released that day, Youngpoong said, "With only a 2.2% stake, we have taken a public tender offer for Korea Zinc shares, conceding the position of the largest shareholder to MBK Partners with a spirit of cutting off our own arm and exposing our flesh to stop the arbitrary management behavior of Chairman Choi Yoon-beom, the management agent who has damaged the spirit of partnership that has lasted for 75 years, and to normalize management."
Youngpoong pointed out, "Since Chairman Choi took office as CEO in 2019, he has been criticized for trying to privately dominate Korea Zinc rather than prioritizing the interests of shareholders."
Youngpoong has filed injunctions for inspection and copying of accounting books to investigate allegations against Chairman Choi, including ▲ breach of trust related to investment by the private equity fund operated by One Asia Partners ▲ involvement in stock price manipulation of SM Entertainment ▲ violation of fiduciary duty related to investment in Ignio Holdings ▲ violation of commercial law related to guarantees without board resolution ▲ and suspicions of preferential treatment in business dealings.
Furthermore, Youngpoong criticized, "Chairman Choi has shown disregard for the interests of Korea Zinc shareholders," adding, "From August 2022 to November last year, he diluted the value of shares by about 16% through third-party allotment rights and mutual exchange of treasury stocks with Hanwha and Hyundai Motor Group, which infringed on the proportional interests of existing shareholders."
They continued, "Chairman Choi has recently been obsessed with 'killing Youngpoong,'" and said, "When Youngpoong and MBK Partners launched the public tender offer, Korea Zinc issued a disclosure containing slanderous propaganda that 'MBK is Chinese capital and if acquired, it will be sold to China,' but ironically, Chairman Choi himself is engaging in contradictory acts by seeking help from Japan's SoftBank and Sumitomo Corporation."
Youngpoong emphasized, "Chairman Choi should stop criticizing Youngpoong, clearly explain the investment background regarding Ignio Holdings and One Asia Partners, and cooperate in clarifying the allegations raised so far by responding to the request for inspection of accounting books and providing all related materials."
They added, "This is to hold Chairman Choi accountable, not to shake Korea Zinc," and said, "The employment relationships of all Korea Zinc employees except Chairman Choi will be firmly maintained, and the future strategic projects pursued by Korea Zinc will continue unchanged." They also stated, "We will make our best efforts with MBK Partners, a corporate management expert and investment specialist, to transition Korea Zinc to a professional management system and establish it as a genuine global leader in the non-ferrous metals sector."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
