Choi Yoon-beom, Chairman of Korea Zinc, to Launch Tender Offer for Youngpoong Precision

Choi Yoon-beom, chairman of Korea Zinc, and Choi Chang-gyu, chairman of Young Poong Precision, along with the Choi family, are launching a counter tender offer for Young Poong Precision in collaboration with a mid-sized private equity fund management company.

According to the investment banking (IB) industry on the 1st, the Choi family is expected to join forces with a domestic private equity fund to conduct a public tender offer for Young Poong Precision shares for about a month starting from the 2nd.

They plan to acquire 3,837,500 shares (24.36%) at 30,000 KRW per share. There is no minimum quantity, and if the subscription volume exceeds the target acquisition volume, the public tender offer will proceed on a pro-rata basis. Hana Securities will act as the lead manager.

Currently, the Choi family, including Chairman Choi Chang-gyu and Chairman Choi Yoon-beom, holds 33.07% of Young Poong Precision shares. This is more than 10 percentage points higher than the 21.75% stake held by the Jang family, including Jang Hyung-jin, advisor to Young Poong.

MBK and Young Poong have been conducting a public tender offer for Young Poong Precision from the 13th of last month until the 6th of this month. They initially offered 20,000 KRW per share, but as the management dispute intensified, they raised the price to 25,000 KRW on the 26th of last month. However, since the closing price on the 30th of last month was 25,300 KRW, which is above the public tender offer price, there has been analysis suggesting that the Choi family might launch a counter tender offer.