MBK: "No Further Increase in Public Tender Offer for Korea Zinc and Young Poong Precision" (Update)

"Commitment to Job Security for Employees of Korea Zinc and Youngpoong Precision"
"No Technology Leakage or Overseas Relocation of Production Bases" Announced

MBK Partners, currently conducting a tender offer for Korea Zinc, declared on the 9th that they will not raise the tender offer prices for Korea Zinc and Young Poong Precision any further.

In a press release issued that day, MBK stated, "The tender offer prices we proposed?830,000 KRW per share for Korea Zinc and 30,000 KRW per share for Young Poong Precision?are sufficiently high compared to the companies' current fair values as of today, and we believe these prices already provide existing shareholders with a significant premium."

They added, "The more fundamental reason for not increasing the tender offer prices further is that any price competition beyond the current tender offer prices would burden the financial structures of Korea Zinc and Young Poong Precision, resulting in a decline in corporate and shareholder value and a deterioration of global competitiveness."

MBK said, "We cannot simply watch as additional price competition damages the corporate value of Korea Zinc and Young Poong Precision," and reiterated, "Regardless of whether Korea Zinc raises its tender offer price for treasury stock acquisition or whether there is a competing tender offer price increase for Young Poong Precision, MBK Partners will not raise the tender offer prices for Korea Zinc and Young Poong Precision any further."

MBK also stated, "We will make every effort to win the injunction trial to suspend the 'Korea Zinc treasury stock acquisition tender offer' procedure," explaining, "While the number of shares we acquire through the tender offer is important, what is more crucial for MBK Partners is to prevent irreversible damage to Korea Zinc caused by the leveraged treasury stock tender offer and to ensure that Korea Zinc can develop stably under transparent governance."

They also promised to guarantee the employment of Korea Zinc and Young Poong Precision employees.

MBK said, "We have no plans to replace the existing professional management teams of Korea Zinc and Young Poong Precision," adding, "We will cooperate with the existing professional management teams to do our best for the development and success of Korea Zinc and Young Poong Precision. We guarantee the employment of all employees, including the professional management teams, of Korea Zinc and Young Poong Precision." Furthermore, they mentioned, "The dedication and efforts of the employees and labor unions of Korea Zinc and Young Poong Precision, which are the driving forces behind the companies' growth, deserve respect. We promise employment security."

In particular, they stated, "We will not engage in actions that could undermine Korea Zinc’s role as a national key industry, such as selling to China or leaking technology overseas," emphasizing, "We recognize that Korea Zinc plays a pivotal role in the South Korean economy as a national key industry. Moreover, we are well aware that technologies held by Korea Zinc, such as all-solid-state manufacturing technology, are designated as core national technologies and are essential not only for the South Korean economy but also for Korea Zinc’s future growth." MBK stressed, "We will prevent such technologies from being leaked overseas and will not relocate domestic production bases abroad."