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Yoonbeom Choi, Chairman of Korea Zinc. (photo= Korea Zinc) |
[Alpha Biz= Reporter Kim Jisun] Private equity firm MBK Partners and the Young Poong Group alliance will raise the tender offer price for Korea Zinc to 750,000 won.
According to industry sources on the 25th, MBK’s special purpose company (SPC), Korea Corporate Investment Holdings, plans to raise the tender offer price for Korea Zinc from 660,000 won to 750,000 won, a 13.6% increase. For Young Poong Precision (036560), the offer price will be increased by 25%, from 20,000 won to 25,000 won.
On the 13th, MBK had announced a plan to tender for a 6.68% to 14.61% stake in Korea Zinc, along with up to a 43.43% stake in Young Poong Precision. Following the announcement, Korea Zinc's stock price surged from the 500,000 won range to over 700,000 won, while Young Poong Precision's stock rose from around 9,000 won to surpass 20,000 won.
By raising the tender offer price, MBK aims to increase the chances of success and block any potential counteractions from Korea Zinc Chairman Choi Yun-beom.
The total investment is also expected to increase. If the maximum number of shares is tendered, the investment would rise from 2.1332 trillion won to 2.4396 trillion won, an increase of about 300 billion won.
On the same day, Young Poong announced that it would lend 300 billion won to Korea Corporate Investment Holdings, which is interpreted as financial support for the raised tender offer.
The industry is now focused on Chairman Choi’s potential counter-tender offer. Korea Zinc plans to raise 400 billion won by issuing corporate bonds (CP) as part of its counter-strategy.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
