Korea Zinc: "MBK Must Withdraw Tender Offer... Disrupting Market Order"

MBK Announces on the 9th "Public Tender Offer Maintained"
Korea Zinc Says "Should Withdraw, Not Maintain Purchase"

Korea Zinc, which is currently in a management rights dispute with the alliance of Youngpoong Precision and MBK Partners (hereinafter MBK), urged, "MBK and Youngpoong should lawfully withdraw the hostile tender offer that triggered this situation before October 14, instead of maintaining it until then."

On the 9th, Korea Zinc issued a statement in response to the Youngpoong-MBK alliance's announcement that they would no longer raise the tender offer price for Korea Zinc and its affiliate Youngpoong Precision. In the statement, Korea Zinc demanded, "If MBK truly values Korea Zinc’s corporate and shareholder value, wants to rectify the market confusion it caused, and protect investors, it should withdraw the hostile tender offer before the 14th."

[Image source=Yonhap News]

Furthermore, Korea Zinc argued that the second injunction filed to block Korea Zinc’s ongoing treasury stock tender offer, which is permitted by the court, should also be withdrawn. Regarding the Youngpoong-MBK alliance’s announcement that they will not increase the current tender offer price of 830,000 KRW per share for Korea Zinc, Korea Zinc stated, "They are not giving up on the hostile merger and acquisition (M&A) and intend to maintain the tender offer until October 14 to continue attracting investors."

They added, "They are exploiting the fact that Korea Zinc’s treasury stock tender offer expires after the 14th and that the second injunction decision, which is nothing more than a 'repetition,' will also be made after the 14th."

Korea Zinc emphasized, "Today’s announcement by the MBK-Youngpoong alliance is merely an inducement message to respond to MBK’s tender offer by October 14, as Korea Zinc’s treasury stock tender offer may be blocked. This is considered another act of market manipulation and disruption of market order, intended to interfere with the company’s lawful and valid treasury stock tender offer."

They continued, "We will do our best to complete the treasury stock tender offer and cancellation to enhance shareholder value through shareholder returns and cancellation via treasury stock acquisition. This is the only best way to minimize capital market confusion such as stock price instability, stabilize the market after this situation ends, and protect investors."