"Korea Zinc's Treasury Stock Tender Offer an Irreversible Loss"
MBK Partners and Yeongpung are reported to have secured more than a 5% stake through a tender offer in the management rights dispute of Korea Zinc.
According to the investment banking (IB) industry on the 14th, the MBK-Yeongpung alliance added more than a 5% stake in the Korea Zinc tender offer conducted until that day, closely approaching a majority based on voting rights.
MBK initially aimed to secure a stake ranging from at least 6.98% to a maximum of 14.61%, but failed to achieve this. Instead, adding to the existing approximately 33% stake, they secured a total stake of over 38%, and it is estimated that the voting rights-based stake did not exceed 50%.
Korea Zinc plans to proceed with the tender offer for treasury shares as scheduled until the 23rd. Since MBK and Yeongpung failed to secure a majority, a 'vote battle' is expected to take place at the upcoming shareholders' meeting between Chairman Choi Yoon-beom's Korea Zinc side and the opposing faction.
Kim Kwang-il, Vice Chairman of MBK Partners (center), is answering questions from the press at a press conference related to MBK Partners' public tender offer for Korea Zinc held on the morning of the 19th at Lotte Hotel in Jung-gu, Seoul. On the left is Kang Sung-doo, President of Young Poong, and on the right is Lee Sung-hoon, a lawyer at Baker McKenzie Korea. [Image source=Yonhap News]
MBK stated, “Today will remain a significant milestone in the Korean capital market,” and pledged to focus all efforts on halting the Korea Zinc treasury share tender offer conducted by Chairman Choi Yoon-beom’s Korea Zinc side.
MBK said, "We sincerely thank all shareholders of Korea Zinc and Yeongpung Precision, as well as everyone who has listened to and trusted MBK Partners and Yeongpung, for their support."
They continued, "As the largest shareholder of Korea Zinc, we intend to solidify management control over Korea Zinc and make our best efforts for Korea Zinc’s sustainable growth and development through establishing transparent corporate governance," adding, "We will engage in sincere communication not only with the market, investors, and shareholders but also with Korea Zinc’s employees, labor unions, affiliates, partner companies, and local communities, and we will fulfill the promises made during this tender offer process as a responsible largest shareholder."
They further explained, "A large-scale self-tender offer financed by over 3 trillion won in borrowings will cause irreparable damage to Korea Zinc," and added, "To prevent this, we will explore all possible measures, including remedies through ongoing litigation procedures."
Additionally, they stated, "After establishing proper corporate governance, we will do everything necessary to help Korea Zinc grow into a globally recognized leader in the non-ferrous metal smelting sector, a company that forms the foundation and future growth engine of the Korean economy and industry, and a company that fulfills its social responsibilities."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
