Chairman Choi Yoon-beom, holding 70% stake, launches counterattack pointing out illegality. On the morning of the 22nd at a hotel in Seoul, Park Gi-duk, president of Korea Zinc, spoke at a press conference held a day before the end of the public tender offer for treasury stocks.
Facing off against the Youngpoong-MBK Partners alliance in a battle for management rights, Chairman Choi Yoon-beom of Korea Zinc successfully completed a public tender offer for Youngpoong Precision, which is considered one of the decisive battlegrounds in this management dispute. Additionally, they launched a counterattack by raising procedural issues in the process of the Youngpoong-MBK alliance acquiring shares.
According to the financial investment industry, Jericho Partners, a special purpose company (SPC) established by Chairman Choi’s side, reported subscribing to 5,492,083 shares, which amounts to 99.6% of its maximum purchase target of 5,512,500 shares, thereby practically fulfilling its target volume. As a result, Chairman Choi’s side has increased their stake in Youngpoong Precision to 70.35% through Jericho Partners by securing an additional 34.9% stake.
Youngpoong Precision holds a 1.85% stake in Korea Zinc and has been seen as the “casting vote” in this management dispute. If Chairman Choi’s side manages to retain control over Youngpoong Precision, it will mean “maintaining the status quo.” However, if the Youngpoong-MBK alliance acquires it, they would essentially secure 3.7% voting rights by taking away the 1.85% stake from Chairman Choi’s side.
Meanwhile, Korea Zinc President Park Gi-duk, at a press conference held at Koreana Hotel in Jung-gu, Seoul, publicly criticized the process of acquiring a 5.34% stake in Korea Zinc, saying it was “a result of abusing litigation procedures and repeated acts of disturbing the market.” Referring to MBK, he denounced them as “corporate predators who plunder profitable companies at low cost using enormous capital as a weapon” and asserted they are “incapable of managing Korea Zinc.”
He further claimed, “The stock market was rampant with deliberate rumors and malicious propaganda, which could only be seen as having a purpose, and as a result, Korea Zinc’s stock price was extremely volatile.”