[Featured Stock] Korea Zinc Declines Despite Raising Treasury Stock Purchase Price

Korea Zinc's stock is falling despite the increase in its tender offer price for treasury shares.

As of 10:31 a.m. on the 11th, Korea Zinc was trading at 778,000 KRW, up 11,000 KRW (1.39%) from the previous trading day.

On the same day, Korea Zinc announced that it would raise the tender offer price from 830,000 KRW to 890,000 KRW. The planned acquisition volume was also increased from 3,209,009 shares to 3,623,075 shares. The planned acquisition amount rose from 2.6635 trillion KRW to 3.2245 trillion KRW. This purchase price is 60,000 KRW higher than the 830,000 KRW tender offer price from MBK, which is attempting to acquire management rights.

The decline in the stock price is interpreted as investors who have no intention of participating in the tender offer selling their shares on the market, based on the judgment that there will be no further increase in the tender offer price.

Meanwhile, on the 8th of this month, after Yeobokhyun, the Financial Supervisory Service Commissioner, warned about the overheating of Korea Zinc's tender offer and ordered an investigation into unfair trading, Youngpoong Precision and MBK announced the next day that they would not further increase the purchase price for Korea Zinc.