Korea / Special Sits, Pairs, Index Rebalancing, Clepsydra Capital

Sanghyun Park

Korea / Special Sits, Pairs, Index Rebalancing

Clepsydra Capital

Investigate special situations, pairs, and index rebalancing trades in Korea.

Event-Driven

<ul>
<li>NPS is now viewing their voting rights on Korea Zinc purely from a returns angle, shifting from earlier expectations of siding with Choi due to political pressure.</li>
<li>We need a tendering strategy for a 20% proration risk, focusing on when MBK will buy that extra 3.7% stake to cut losses on untendered shares.</li>
<li>MBK will aim to buy leftover shares cheaply. Their approach depends on the progress of Choi and Trafigura's talks</li>
</ul>


NPS is now viewing their voting rights on Korea Zinc purely from a returns angle, shifting from earlier expectations of siding with Choi due to political pressure.
We need a tendering strategy for a 20% proration risk, focusing on when MBK will buy that extra 3.7% stake to cut losses on untendered shares.
MBK will aim to buy leftover shares cheaply. Their approach depends on the progress of Choi and Trafigura's talks


Need a Game Plan to Tackle Korea Zinc's Buyback Tender with a 20% Proration Risk

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

<ul>
<li>Devil is in the legal loophole. Issuing treasury shares to employees as bonuses is an exception that is not bound by the condition of '6 months after treasury shares acquisition.</li>
<li>It would be nearly impossible for Korea Zinc to sell 2.4% of its treasury stock to an external friendly force and transform it into a friendly stake by February 2025.</li>
<li>Although MBK/Young Poong Alliance has the advantage right now in this M&amp;A battle for Korea Zinc, it is by no means over.</li>
</ul>


Devil is in the legal loophole. Issuing treasury shares to employees as bonuses is an exception that is not bound by the condition of '6 months after treasury shares acquisition.
It would be nearly impossible for Korea Zinc to sell 2.4% of its treasury stock to an external friendly force and transform it into a friendly stake by February 2025.
Although MBK/Young Poong Alliance has the advantage right now in this M&amp;A battle for Korea Zinc, it is by no means over.


Korea Zinc's 2.4% Treasury Shares - Devil Is In the Legal Loophole

<ul>
<li>We discuss the next steps in the fight for the control of Korea Zinc, after the completion of the tender offer by the MBK Partners and Young Poong alliance. </li>
<li>After the tender offer, MBK and Young Poong's stake in Korea Zinc increased from 33.13% to 38.47%, coming close to more than half of the voting rights.</li>
<li>We continue to believe that at current stage, MBK/Young Poong alliance has the advantage in the fight for the control of Korea Zinc. </li>
</ul>


We discuss the next steps in the fight for the control of Korea Zinc, after the completion of the tender offer by the MBK Partners and Young Poong alliance. 
After the tender offer, MBK and Young Poong's stake in Korea Zinc increased from 33.13% to 38.47%, coming close to more than half of the voting rights.
We continue to believe that at current stage, MBK/Young Poong alliance has the advantage in the fight for the control of Korea Zinc. 


Scenario Analysis of Korea Zinc's Share Buyback, Cancellation, and Tender Offer + NPS's Five Options

<ul>
<li>Korea Zinc raised the share buyback and tender offer price from 830,000 won to 890,000 won. Korea Zinc's share price closed up by only 0.6% today to 794,000 won. </li>
<li>As a result, the amount of capital involved in this share buyback and tender offer would increase from 2.7 trillion won to 3.2 trillion won.</li>
<li>Despite higher share buyback/tender offer of Korea Zinc by Choi family, we believe that this fight for the control of Korea Zinc is increasingly in favor of MBK/Jang family. </li>
</ul>


Korea Zinc raised the share buyback and tender offer price from 830,000 won to 890,000 won. Korea Zinc's share price closed up by only 0.6% today to 794,000 won. 
As a result, the amount of capital involved in this share buyback and tender offer would increase from 2.7 trillion won to 3.2 trillion won.
Despite higher share buyback/tender offer of Korea Zinc by Choi family, we believe that this fight for the control of Korea Zinc is increasingly in favor of MBK/Jang family. 


Korea Zinc Raises Share Buyback and Tender Offer Price to 890,000 Won

<ul>
<li>MBK officially disclosed that they scooped up 5.34% of the Korea Zinc (010130 KS) shares in the tender that wrapped up today.</li>
<li>MBK scored a partial win by securing more voting rights than Choi, with unexpected backing from foreign and local institutions, likely due to proration risk over legal issues.</li>
<li>Still, securing just 5.34% puts MBK in a tough position, requiring them to navigate minority shareholder votes while pushing hard on the legal front to block the buyback.</li>
</ul>


MBK officially disclosed that they scooped up 5.34% of the Korea Zinc (010130 KS) shares in the tender that wrapped up today.
MBK scored a partial win by securing more voting rights than Choi, with unexpected backing from foreign and local institutions, likely due to proration risk over legal issues.
Still, securing just 5.34% puts MBK in a tough position, requiring them to navigate minority shareholder votes while pushing hard on the legal front to block the buyback.


MBK's Korea Zinc & Young Poong Precision Tender Results Officially Out

South Korea

Korea Zinc Co., Ltd. specializes in non-ferrous metal smelting industry.  The Company manufactures zinc ingots, electrolytic gold, silver, lead, sulfuric acid, and copper.  Korea Zinc provides its products to domestic and overseas markets.

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Korea Zinc (010130 KS)

Need a Game Plan to Tackle Korea Zinc's Buyback Tender with a 20% Proration Risk

This post explains why we need a game plan for Korea Zinc's buyback tender offer, keeping that 20% proration risk in mind.

Sanghyun Park

Korea Zinc's 2.4% Treasury Shares - Devil Is In the Legal Loophole

Devil is in the legal loophole. Issuing treasury shares to employees as bonuses is an exception that is not bound by the condition of '6 months...

Douglas Kim

MBK's Korea Zinc & Young Poong Precision Tender Results Officially Out

This post details the official results of MBK's tender offers for Korea Zinc and Young Poong Precision, which got released in regulatory filings...

Sanghyun Park

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Need a Game Plan to Tackle Korea Zinc's Buyback Tender with a 20% Proration Risk

This post explains why we need a game plan for Korea Zinc's buyback tender offer, keeping that 20% proration risk in mind.

Sanghyun Park

Korea Zinc's 2.4% Treasury Shares - Devil Is In the Legal Loophole

Devil is in the legal loophole. Issuing treasury shares to employees as bonuses is an exception that is not bound by the condition of '6 months...

Douglas Kim

Scenario Analysis of Korea Zinc's Share Buyback, Cancellation, and Tender Offer + NPS's Five Options

We discuss the next steps in the fight for the control of Korea Zinc, after the completion of the tender offer by the MBK Partners and Young Poong...

Douglas Kim

Korea Zinc Raises Share Buyback and Tender Offer Price to 890,000 Won

MBK acquired 5.34% additional shares of Korea Zinc through its tender offer. MBK alliance’s stake in Korea Zinc increased from 33.13% to 38.47%....

Douglas Kim

MBK's Korea Zinc & Young Poong Precision Tender Results Officially Out

This post details the official results of MBK's tender offers for Korea Zinc and Young Poong Precision, which got released in regulatory filings...

Sanghyun Park