11.26% Subscription for Treasury Stock Tender Offer
Falls Short of 20% Target
Korea Zinc: "Rumors Spread That MBK and Youngpoong's Treasury Stock Purchases
Are Less Than Circulating Shares"
"Will Hold Legally Responsible for Market Disruption"
Korea Zinc announced that it has successfully completed its tender offer for treasury shares and stated that it will take legal action in response to MBK Partners and Youngpoong's claims that they inflated the circulating shares excessively to obstruct the tender offer.
On the 28th, Korea Zinc disclosed that a total of 2,331,302 shares, equivalent to 11.26% of the total issued shares, were subscribed in the tender offer. Of these, 9.85% were purchased as treasury shares and canceled, while the remaining 1.41% will be acquired by Bain Capital, the 'ally' who conducted the tender offer together with Korea Zinc.
Korea Zinc and Bain Capital aimed to purchase about 20% of the issued shares at 890,000 KRW per share through this tender offer, but the actual subscription rate fell short of the target.
Regarding the subscription results, Korea Zinc stated, "This directly proves that the circulating shares we have explained to the market and media are accurate," and added, "Until now, MBK and Youngpoong have spread rumors and black propaganda suggesting that Korea Zinc's tender offer volume of 20% is less than the circulating shares, thereby increasing uncertainty about Korea Zinc's tender offer, which guarantees a fixed profit of 60,000 KRW."
Earlier, Korea Zinc filed a complaint with the Financial Supervisory Service alleging fraudulent unfair trading and market manipulation, claiming that MBK and Youngpoong deliberately obstructed Korea Zinc's tender offer through provisional injunctions and other means, resulting in 5.34% of shares being concentrated in MBK and Youngpoong's tender offer, which offered a lower price than Korea Zinc.
Korea Zinc judged that MBK and Youngpoong had the intention to disrupt the market by excessively inflating the circulating shares and increasing market uncertainty, and plans to consider additional legal measures. According to Korea Zinc, MBK and Youngpoong have explained to investors that there is 34.9% circulating shares.
Korea Zinc added, "There is suspicion that they intentionally spread signals that responding to MBK and Youngpoong's tender offer is safer, while raising concerns that shareholders and investors may suffer losses by not subscribing all their holdings through the tender offer alone."
A company official said, "We plan to quickly normalize management to repay the trust and support of the National Pension Service, business partners, shareholders, and collaborators," and added, "We will firmly maintain our position as the No. 1 non-ferrous metals company and strive to achieve mutual growth with partners by strengthening the competitiveness of the Troika Drive new business."
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