Choi Yoon-beom, chairman of Korea Zinc, choking his neck while speaking at a press conference related to a management dispute with YoungPoong and MBK at Grand Hyatt in Yongsan-gu, Seoul on the 2nd. News1
Choi Yoon-beom, chairman of Korea Zinc, has raised the public offer price of YoungPoong Precision to 35,000 won on the 11th. YoungPoong Precision, as the “casting vote” in the management dispute between MBK Partners and YoungPoong, is interpreted as expressing its willingness to defend its management rights.
Choi Yoon-beom’s special purpose vehicle (SPC) Jericho Partners, established by the chairman and others, announced on that day to raise the public offer price of YoungPoong Precision from the existing 30,000 won to 35,000 won. Jericho Partners held a board meeting on the 7th to discuss raising the public offer price of YoungPoong Precision but did not disclose the result, revealing the decision to raise the price through the announcement on that day.
The planned quantity to be acquired remains at 25% of the total issued shares. On the other hand, MBK aims to secure all remaining shares except for the stake held by the Choi and Jang families. Currently, Choi’s family holds a 35.25% stake in YoungPoong Precision, while the Jang family holds 21.25%. It is considered that even if Choi’s family acquires only about 15%, it would be over half, so raising the public offer price is seen as advantageous. KB Securities has been added as the lead manager for the public offering. With KB Securities, online applications are possible, enhancing convenience for individual and other shareholders.
Citizens entering the building where the Korea Zinc board of directors meeting was held on the morning of the 11th at the Korea Zinc headquarters in Jongno-gu, Seoul. News1
YoungPoong Precision holds a 1.85% stake in Korea Zinc. Currently considered as friendly to Choi Yoon-beom’s side, if MBK and YoungPoong take over, it will secure 3.7% of the voting rights within Korea Zinc. If Korea Zinc buys back its own shares as planned, the effect will be even greater. For Choi as chairman, it is a situation where he must protect the management rights of YoungPoong Precision.
MBK entered into a public takeover bid for YoungPoong Precision on the 13th of last month. The initial public offer price per share of 20,000 won has now risen to 30,000 won. On the 9th, MBK declared that they would not raise the public offer price for Korea Zinc and YoungPoong Precision any further. As a result, the public offer prices for YoungPoong Precision have been set at 35,000 won for Choi Yoon-beom’s side and 30,000 won for MBK’s side.
Although the price is higher for Choi Yoon-beom’s side, it is still premature to guarantee victory. MBK’s public takeover of YoungPoong Precision is until the 14th of this month, which is faster than Choi Yoon-beom’s side ending on the 21st. With the purchase quantity limited to 25% of the total issued shares from Choi Yoon-beom’s side, there is a prospect that both sides will divide the application, as there is a possibility that all quantities will not be transferred to Choi Yoon-beom’s side from the perspective of shareholders.
Meanwhile, Korea Zinc held a board meeting on the morning of that day and decided to raise the purchase price of its own shares from the existing 830,000 won to 890,000 won.