Today, the first outline of the management rights dispute involving KoreAlyun has been revealed… Youngpoong and MBK have concluded their public takeover bids.

Financial industry, expected to secure single-digit stake… Possibility of extension, but chances are low
Disputes expected to continue even after public bid ends… Likely showdown in shareholders’ meeting,
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Board of directors meeting of Korea Zinc
(Seoul=Yonhap News) Photojournalists Kim Sung-min = A view of the Korea Zinc headquarters in Jongno-gu, Seoul on the morning of the 11th when the board of directors of Korea Zinc was held. Korea Zinc has been in a public bid with Bain Capital, a global private equity fund, since the 4th, in response to an attempted acquisition of management rights by Yeongpung and MBK Partners. In this board of directors meeting, it is expected that Korea Zinc will consider raising the public bid price for its own shares. 2024.10.11 [email protected],
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, ‘(Seoul=Yonhap News) Reporter Song Eun-kyung = The management dispute of Korea Zinc is reaching a major turning point with the end of the public bid by Yeongpung and MBK Partners after a month of occurrence.’,
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, ‘According to the financial investment industry, the public bid for Korea Zinc by Yeongpung and MBK Partnership will be carried out through NH Investment & Securities’ offline branches or online (website, HTS, MTS) until 3:30 pm on this day.’,
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, ‘On the 12th of last month, just a month after Yeongpung, the largest shareholder of Korea Zinc, and the private equity fund (PEF) operator MBK Partners signed a sudden business cooperation agreement and immediately started the public bid the next day.’,
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, ‘In this process, the Yeongpung and MBK Partnership raised the public bid price twice from the initial 660,000 won per share to 750,000 won, 830,000 won, and the side of Chairman Choi Yoon-beom, who is trying to secure management rights, started the public bid of its own shares at 830,000 won but adjusted the price upwards once to 890,000 won.’,
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, ‘It is observed that the final public bid price by Yeongpung and MBK Partnership is 830,000 won, lower than the 890,000 won that Chairman Choi aimed for in his public bid for its own shares, which is expected not to fill the maximum quantity target (14.61% of total outstanding shares).’,
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, ‘However, considering tax issues that differ for each investor, the uncertainty of the injunction lawsuit raised by Yeongpung to stop the public bid process of its own shares, and concerns of over-subscription due to discrepancies in the number of outstanding shares in circulation, the financial industry generally views the possibility of securing a single-digit stake as possible.’,
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, ‘A financial industry official said, “It is unlikely that subscriptions will heavily lean towards one side” and “Disputes are expected to continue until the regular shareholders’ meeting season in March next year, with temporary shareholders’ meeting convening, voting rights securing, and proxy battle taking place.”‘,
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, ‘However, if on this day the share price of Korea Zinc significantly surpasses the 830,000 won public bid price by Yeongpung and MBK Partnership and the trading volume increases significantly above the usual level, the incentive for investors to participate in the public bid may diminish, leading to the possibility of less subscription volume than expected.’,
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, ‘If the subscription volume turns out to be unexpectedly low, Yeongpung and MBK Partnership may choose to extend the public bid period without raising the price.’,
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, ‘From the perspective of Yeongpung and MBK Partnership, extending the period may be a favorable option in future injunction lawsuits. Even if the court determines that there is illegality, stopping a Korea Zinc’s own share public bid of over 300 billion won can bring confusion to the market and could be burdensome. If the public bid by Yeongpung and MBK Partnership is ongoing, it may help to alleviate such confusion.’,
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, ‘However, it is a challenging choice for MBK as it could appear to be ‘all-in’ in the injunction lawsuit and there is no guarantee that extending the period will lead to a large subscription volume later on.’,
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, ‘Due to these factors, even if a small volume is acquired, the scenario of moving towards a showdown in the shareholders’ meeting through a voting battle is becoming a likely scenario.’,
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, ‘Another industry official said, “If the competition ratio of Yeongpung and MBK Partnership’s subscription is low, it may mean that investors prefer Korea Zinc’s own share public bid. Considering that own shares do not have voting rights, it may not be a bad outcome for Yeongpung and MBK Partnership.”‘,
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[Graphic] Korea Zinc’s own share public bid diary
(Seoul=Yonhap News) Journalist Kim Min-ji = Korea Zinc Chairman Choi Yoon-beom raised the public bid price of his own shares from 830,000 won to 890,000 won on the 11th, bringing the Korea Zinc management dispute to a new phase.
Currently, Yeongpung and MBK Partnership have offered 830,000 won as the public bid price for Korea Zinc’s shares. Korea Zinc raised the stakes by 60,000 won higher than this.
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