MBK "Acknowledges Governance Improvement Intent in Result of Korea Zinc Tender Offer"

MBK Partners announced on the 17th that it has secured an additional 5.34% stake in Korea Zinc through a tender offer, stating that "the original purpose of the tender offer to restore Korea Zinc's governance (decision-making structure) has been recognized by shareholders and the capital market."

According to the tender offer result report disclosed on the same day, Youngpoong and MBK Partners will purchase all 1,105,163 shares (5.34%) tendered in response to the Korea Zinc tender offer.

Dividing the shares according to the planned tender offer ratio, MBK Partners will secure 1,101,510 shares (5.32%), and Youngpoong will secure 3,653 shares, equivalent to 0.02%.

As a result, the combined stake of the MBK-Youngpoong alliance in Korea Zinc increases from the previous 33.13% to 38.47%.

The stake held by the family of Chairman Choi Yoon-beom of Korea Zinc, who is conducting a treasury stock tender offer to defend management rights, is 15.65%, and when combined with shareholders classified as 'allies' such as Hanwha, Hyundai Motor, LG Chem, and Trafigura, the total stake amounts to 34.01%.

The tender offer for Youngpoong Precision, conducted solely by MBK, received only 830 shares in response, falling far short of the target quantity of 6,840,801 shares (43.43% of Youngpoong Precision's total issued shares). Youngpoong Precision holds a 1.85% stake in Korea Zinc.

Youngpoong and MBK succeeded in increasing their Korea Zinc stake by more than 5%, positioning themselves advantageously in the management rights dispute.

Meanwhile, MBK issued a press release separately from the disclosure, emphasizing the legitimacy of the tender offer by stating that this result was achieved thanks to the support of shareholders in the capital market.

MBK stated, "The main reason shareholders concentrated an additional 5.34% voting rights stake to MBK and Youngpoong is that they realized Chairman Choi Yoon-beom's treasury stock tender offer severely damages Korea Zinc's financial structure, transferring the damage to the remaining shareholders," adding, "Due to excessive borrowings, Korea Zinc's debt ratio, which was stable, has reached 100%, and the possibility of a credit rating downgrade has been raised, causing shareholders to start distancing themselves from Chairman Choi, who made this decision."

It continued, "Moreover, as it became known that the more subscriptions there are for the non-voting treasury stock tender offer, the relatively higher MBK and Youngpoong's voting rights stake becomes, many began to question Chairman Choi's choice," adding that Chairman Choi's treasury stock tender offer is evaluated as a self-defeating move lacking purpose, justification, and practical benefit.