MBK, Yeongpung Borrow Additional 300 Billion Won... Will Korea Zinc's Tender Offer Increase?

MBK Partners (hereinafter MBK), which is conducting a tender offer for Korea Zinc's shares, has borrowed an additional 300 billion KRW from Young Poong.

According to the electronic disclosure system on the 25th, Young Poong held a board meeting that day and announced that it had resolved to lend money to Korea Investment Holdings. The loan amount is 300 billion KRW, the loan period is one year, and the interest rate is 5.70%.

Lee Jejung, Vice Chairman of Korea Zinc, is expressing opposition to the public tender offer at a press conference regarding the management rights dispute with MBK and Young Poong held on the 24th at Korea Zinc in Jongno-gu, Seoul. Photo by Jo Yongjun

Young Poong explained the purpose of the loan as "providing funds for the tender offer settlement and other investment activities of the loan recipient." It added, "The specific loan execution amount will be determined according to the withdrawal request of the loan recipient."

Korea Investment Holdings is a special purpose company (SPC) of MBK. Because of this, the market is speculating that MBK, which is conducting the tender offer for Korea Zinc's shares together with Young Poong, may have secured additional funds to raise the tender offer price.

So far, MBK has stated that it will not raise the tender offer price, but the market price has been maintained at a higher level, so the possibility of an increase is not ruled out. The tender offer price for Korea Zinc proposed by MBK and Young Poong is 660,000 KRW, but the closing price on that day far exceeded this at 704,000 KRW.

The period during which MBK and Young Poong can adjust the price without changing the tender offer period is until the 26th.