Yeongpung and MBK Partners, who are pursuing the acquisition of management rights of Korea Zinc, have suddenly raised the public tender offer price for Korea Zinc and Yeongpung Precision from 660,000 KRW per share to 750,000 KRW per share. On the 25th, the closing price of Korea Zinc was 704,000 KRW.
According to the investment banking (IB) industry on the day, MBK's special purpose company (SPC) Korea Corporate Investment Holdings and Yeongpung will adjust the public tender offer price for Korea Zinc from 660,000 KRW per share to 750,000 KRW per share, an increase of 13.6%. Yeongpung Precision will raise its price from 20,000 KRW per share to 25,000 KRW per share, a 25% increase. The cost involved ranges from a minimum of 1.0802 trillion KRW to a maximum of 2.2611 trillion KRW.
The target is between a minimum of 1,445,036 shares (6.98%) and a maximum of 3,024,881 shares (14.6%) out of a total of 20,703,283 issued shares of Korea Zinc. In the case of Yeongpung Precision, it will purchase all tendered shares within the maximum range of 6,840,801 shares (approximately 43.43% of the total issued shares) without any minimum condition.
The closing period remains the same, ending on the 4th of next month. Although the original closing date was the 6th, since the market will not be open, the deadline is 3:30 PM on the 4th. Chairman Choi Yoon-beom's side has only five trading days to respond.
On the day, Korea Zinc's stock price was 704,000 KRW, and since the public tender offer began on the 13th, it has never fallen below the previous offer price of 660,000 KRW. Yeongpung and MBK had been confident that the existing public tender offer price was sufficient for success, as the average purchase price of institutional investors was around 450,000 KRW. However, if institutions subscribe to the tender offer at the current stock price, they cannot avoid the problem of selling at a low price, which is interpreted as MBK playing the price increase card.
On the same day, MBK borrowed 300 billion KRW from Yeongpung. Yeongpung held a board meeting and announced that it had resolved to lend money to Korea Corporate Investment Holdings. Korea Corporate Investment Holdings is MBK's special purpose company (SPC). The loan amount is 300 billion KRW, the loan period is one year, and the interest rate is 5.70%. Yeongpung explained the purpose of the loan as "providing funds for the counterparty's public tender offer settlement funds and other investment activities." It added, "The specific loan execution amount will be determined according to the withdrawal request of the counterparty."
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