The stock price of Yeongpoong Precision is on a downward trend.
As of 9:07 a.m. on the 10th, Yeongpoong Precision was traded at 30,000 won on the KOSPI market, down 3,800 won (11.24%) from the previous trading day.
The day before, MBK Partners (hereinafter MBK), which is conducting a public tender offer together with Yeongpoong to secure management rights of Korea Zinc, announced that it would no longer raise the public tender offer prices for Korea Zinc and Yeongpoong Precision.
MBK stated in a press release that "the public tender offer prices of 830,000 won per share for Korea Zinc and 30,000 won per share for Yeongpoong Precision are sufficiently high compared to the current fair value of each company."
MBK explained that the current public tender offer prices already provide a significant premium to existing shareholders, and further price competition above the current prices would burden the financial structures of Korea Zinc and Yeongpoong Precision, thereby lowering corporate value and shareholder value.
MBK added, "We cannot just watch the corporate value of Korea Zinc and Yeongpoong Precision being damaged due to additional price competition," and stated that this decision was made regardless of whether Chairman Choi Yoon-beom of Korea Zinc's side decides to raise the offer further.
In response, Korea Zinc criticized this as "an attempt to obstruct the tender offer for treasury shares."
Korea Zinc evaluated that "this is merely an inducement message to respond to their tender offer by the 14th, as our company's treasury share tender offer could be blocked."
They further stated, "It is another form of market manipulation and disruption of market order, aimed at obstructing the company's (Korea Zinc's) treasury share tender offer," and insisted, "If MBK truly cares about Korea Zinc's corporate value and shareholder value, they should withdraw the hostile tender offer and also withdraw the injunction application."
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