[Featured Stock] Youngpoong Precision Falls 5% Despite Tender Offer Increase

Tender Offer Price Raised from 30,000 to 35,000
Weakness Observed Early in Trading After Disclosure

Yeongpung Precision shows weakness despite the increase in the counter tender offer price by Choi Yoon-beom, chairman of Korea Zinc.

As of 9:55 a.m. on the 11th, Yeongpung Precision is trading at 29,400 won, down 5.92% (1,850 won) from the previous day. The stock price of Yeongpung Precision had fallen below the 30,000 won mark the day before but closed above 30,000 won. Shortly after the market opened that day, it reached a high of 31,250 won before the 30,000 won level collapsed.

Before the market opened that day, Jericho Partners, a special purpose company (SPC) established by Chairman Choi’s side, announced that it would raise the tender offer price for Yeongpung Precision from the existing 30,000 won to 35,000 won, an increase of 5,000 won. Jericho Partners is an SPC established by Chairman Choi, his uncle Choi Chang-young, honorary chairman of Korea Zinc, and Choi Chang-gyu, chairman of Yeongpung Precision. The planned purchase quantity remains the same at 25%. Yeongpung Precision holds a 1.85% stake in Korea Zinc, making it a key factor in the management rights dispute.

Meanwhile, MBK Partners and the Yeongpung side, who are engaged in a management rights dispute over Korea Zinc, have set their tender offer price at 30,000 won and have no plans to raise it further. In the past, whenever the tender offer prices were raised by both sides, Yeongpung Precision’s stock price soared. However, although it is early in the trading day, it is showing a downward trend, presenting a distinctly different pattern from before.