Choi Yunbeom's Counterattack... Youngpoong Precision's Tender Offer at 30,000 KRW per Share

Choi Chang-gyu, Choi Chang-young, Choi Yoon-beom Establish SPC
First Goal: Expand Shareholding by 60.3%

Choi Chang-gyu, Chairman of Youngpoong Precision, Choi Chang-young, Honorary Chairman of Korea Zinc, and Choi Yoon-beom, Chairman of Korea Zinc, are launching a counter tender offer against Youngpoong Precision. This is a counterattack against the merger and acquisition (M&A) being conducted by MBK Partners and Youngpoong.

Jericho Partners, a special purpose company (SPC) established by the three individuals, announced on the 2nd that it will proceed with a counter tender offer for Youngpoong Precision until the 21st. They aim to secure up to 25% of Youngpoong Precision’s shares and, after completing the tender offer, to hold more than 60% of the total shares, with no minimum quantity specified.

Jericho Partners explained, "This is a countermeasure against the tender offer for Youngpoong Precision initiated by MBK Partners on the 13th of last month."

The tender offer price by Jericho Partners is 30,000 KRW per share, which is 5,000 KRW (20%) higher than the 25,000 KRW per share offered by MBK Partners. Compared to the closing price of Youngpoong Precision on the 30th of last month, which was 25,300 KRW, it is 4,700 KRW (19%) higher.

Youngpoong Precision has succeeded in domesticating industrial pumps that had depended on foreign sources for over 40 years, and has developed high-efficiency pumps and valves to support the development of several national key industries such as petrochemicals, refining, and smelting. It also participates in defense projects through its foundational casting industry, fulfilling its social responsibilities.

A representative of Youngpoong Precision stated, "We will block MBK Partners, who have no interest in increasing corporate value and have launched the tender offer solely because they hold shares in Korea Zinc. We will proceed as planned with the company’s management policies supported by shareholders, the vision for sustainable growth, and shareholder-friendly policies."