MBK Partners, currently involved in a management dispute with Korea Zinc, announced that they would no longer raise the tender offer prices for Korea Zinc and Youngpoong Precision.
This decision seems to be influenced by growing concerns from the financial authorities and the public over excessive competition, as well as the government’s increasing involvement in the matter. There is also speculation that MBK’s position may be more favorable due to tax considerations and the timing of the tender offer’s conclusion.
On Oct. MBK Partners explained that raising the tender price further would put undue pressure on the financial structure of both Korea Zinc and Youngpoong Precision, potentially harming both corporate and shareholder value, while also weakening their global competitiveness.
They emphasized that, instead of engaging in a price war, their priority is to win the court injunction to halt Korea Zinc’s share buyback process. They stated, “While acquiring a substantial amount of shares through the tender offer is important, what matters more to us at MBK Partners is preventing irreversible damage to Korea Zinc caused by its debt-financed buyback.”
