Korea Zinc "Equipped to Compete Against MBK and Yeongpung... Will Prevent Predatory M&A"

Park Ki-deok, CEO of Korea Zinc, Statement
"Dawn is Breaking Slowly... Time to Show Our Potential"

Park Ki-duk, CEO of Korea Zinc, stated on the 29th, "With the help and advice of many people, we have gained the strength and wisdom to stand against them (MBK Partners and Young Poong)," sparking speculation that Chairman Choi Yoon-beom's side is nearing the timing for a counter tender offer.

In a statement on the 29th, CEO Park said, "We have been contemplating ways to protect the company so that the de-China supply chain of global core materials and raw materials is not damaged by predatory speculative capital."

He added, "The past ten days have been both short and very long for Korea Zinc and its members, including myself, but the darkness is gradually fading, and with the sound heralding the morning, dawn is slowly breaking. It is time to show the resilience that made Korea Zinc, which they considered an easy prey and asset, rise to become the world's number one company."

As MBK and Young Poong recently raised their tender offer price from 660,000 won to 750,000 won, if Chairman Choi's side counters with a tender offer at 800,000 won per share, the required funds are estimated to exceed 1.3 trillion won. Accordingly, Chairman Choi's side is reportedly actively moving to secure funding, including the counter tender offer card.

CEO Park claimed, "Since declaring their predatory mergers and acquisitions (M&A), MBK and Advisor Jang Hyung-jin have openly revealed their dark intentions," adding, "They have even specified a timeline, saying they will put Korea Zinc on the market in 7 to 8 years, treating a national key industry like a commodity."

He continued, "They talk about selling whenever they get a chance, while on the other hand claiming they will maintain future businesses that require long-term and continuous investment, business expertise, and management capability," and said, "They are deceiving and misleading investors, the market, the media, and the public with all sorts of sweet talk, including raising dividends to 25,000 won."

CEO Park warned, "The future of Korea Zinc, controlled by the Young Poong-MBK Partners alliance, is as clear as day," stating, "To cover losses and recover speculative funds, they will indiscriminately damage not only Korea Zinc’s core assets but also assets for future investments." He explained this is why voices of concern are pouring in simultaneously from local communities such as Ulsan, Korea Zinc’s core technical staff and partners, domestic political circles, as well as political and business sectors in the United States and Australia.

He pledged, "We promise to take this crisis as an opportunity to become a more solid and robust company," emphasizing, "As we have done so far, we will continue to quietly fulfill our mission for the development of Korea’s industry and to become an eco-friendly energy materials company."