Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Event-Driven

<ul>
<li>On 4 October, MBK Partners announced that it is raising its tender offer price of Korea Zinc from 750,000 won to 830,000 won, matching Choi family's tender offer price. </li>
<li>As the price and conditions have changed, the tender offer period for Korea Zinc by MBK Partners and Young Poong will be extended by 10 days until 14 October.</li>
<li>Unless the Choi family makes another counter offer, upping the tender offer price even further, MBK/Young Poong is in a better position to win this M&amp;A war for Korea Zinc.</li>
</ul>


On 4 October, MBK Partners announced that it is raising its tender offer price of Korea Zinc from 750,000 won to 830,000 won, matching Choi family's tender offer price. 
As the price and conditions have changed, the tender offer period for Korea Zinc by MBK Partners and Young Poong will be extended by 10 days until 14 October.
Unless the Choi family makes another counter offer, upping the tender offer price even further, MBK/Young Poong is in a better position to win this M&amp;A war for Korea Zinc.


MBK Raises Tender Offer Price of Korea Zinc to 830,000 Won

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.

<ul>
<li>MBK ditched the hard floor, eliminating cancellation risk. With a 15% GGT rate, there’s a 4% spread, so if you can secure volume, the deal looks solid.</li>
<li>MBK's tender offer has less volume than Choi's buyback (18%), increasing proration risk, but Choi’s deal also faces legal headaches, leaving some cancellation risk.</li>
<li>Tax implications differ: MBK's offer incurs capital gains tax, while Choi’s buyback is subject to dividend tax. Foreign investors may prefer MBK’s 0% withholding tax, impacting participation.</li>
</ul>


MBK ditched the hard floor, eliminating cancellation risk. With a 15% GGT rate, there’s a 4% spread, so if you can secure volume, the deal looks solid.
MBK's tender offer has less volume than Choi's buyback (18%), increasing proration risk, but Choi’s deal also faces legal headaches, leaving some cancellation risk.
Tax implications differ: MBK's offer incurs capital gains tax, while Choi’s buyback is subject to dividend tax. Foreign investors may prefer MBK’s 0% withholding tax, impacting participation.


MBK Raised Korea Zinc's Tender Price to ₩830K and Dropped the Hard Floor, Keeping the Upper Hand

<ul>
<li>Korea Zinc plans to repurchase and cancel shares worth 2.663 trillion won. Korea Zinc's partner Bain Capital also plans to purchase around 430 billion won for a 2.5% stake. </li>
<li>Korea Zinc plans to buy back shares at 830,000 won per share, which is 11% higher than MBK's revised up tender offer price of 750,000 won.</li>
<li>Choi family/Bain Capital's efforts to conduct a massive share buyback and cancellation at higher prices than the market price goes against the globally accepted market practices.</li>
</ul>


Korea Zinc plans to repurchase and cancel shares worth 2.663 trillion won. Korea Zinc's partner Bain Capital also plans to purchase around 430 billion won for a 2.5% stake. 
Korea Zinc plans to buy back shares at 830,000 won per share, which is 11% higher than MBK's revised up tender offer price of 750,000 won.
Choi family/Bain Capital's efforts to conduct a massive share buyback and cancellation at higher prices than the market price goes against the globally accepted market practices.


Korea Zinc: Plans to Buy Back and Cancel Shares Worth 2.7 Trillion Won + Team Up with Bain Capital

<ul>
<li>Young Poong filed a criminal complaint against the board of directors of Korea Zinc (010130 KS) who voted in favor of the tender offer by buying back Korea Zinc's shares.</li>
<li>If Korea Zinc proceeds with the share buyback at higher price than the tender offer price by MBK, there are two main scenarios.  </li>
<li>Trading Action Point: If Uncertain, Watch the Price Action in the Next Several Days</li>
</ul>


Young Poong filed a criminal complaint against the board of directors of Korea Zinc (010130 KS) who voted in favor of the tender offer by buying back Korea Zinc's shares.
If Korea Zinc proceeds with the share buyback at higher price than the tender offer price by MBK, there are two main scenarios.  
Trading Action Point: If Uncertain, Watch the Price Action in the Next Several Days


Legal Chaos Amid Young Poong Filing a Criminal Complaint Against Korea Zinc's BOD and What's Next?

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>Never a dull moment for <strong><a href="https://www.smartkarma.com/entities/korea-zinc-co-ltd" target="_blank" data-smartkarma-citation="entities:17944:1" rel="noopener">Korea Zinc (010130 KS)</a></strong> (KZ).  After MBK/Young Poong’s injunction to block KZ’s buyback was denied, KZ, together with Bain Capital, tabled a punchy Offer.</li>
<li>KZ has launched a 3.21mn share buyback (15.5% of shares out) at ₩830,000/share. Bain will also buy 2.5%. KZ's buyback is to be funded by short-term loans and corporate bonds.</li>
<li>MBK/Young Poong have filed another injunction against this buyback. Its case has merit. And that legal overhang ostensibly accounts for KZ trading ~14% below the buyback terms. </li>
</ul>


Never a dull moment for Korea Zinc (010130 KS) (KZ).  After MBK/Young Poong’s injunction to block KZ’s buyback was denied, KZ, together with Bain Capital, tabled a punchy Offer.
KZ has launched a 3.21mn share buyback (15.5% of shares out) at ₩830,000/share. Bain will also buy 2.5%. KZ's buyback is to be funded by short-term loans and corporate bonds.
MBK/Young Poong have filed another injunction against this buyback. Its case has merit. And that legal overhang ostensibly accounts for KZ trading ~14% below the buyback terms. 


Korea Zinc (010130 KS)'s ₩830,000/Share Offer. Mmm ...

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.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Korea Zinc (010130 KS)

MBK Raises Tender Offer Price of Korea Zinc to 830,000 Won

On 4 October, MBK Partners announced that it is raising its tender offer price of Korea Zinc from 750,000 won to 830,000 won, matching Choi...

Douglas Kim

MBK Raised Korea Zinc's Tender Price to ₩830K and Dropped the Hard Floor, Keeping the Upper Hand

MBK bumped up the tender price for Korea Zinc to 830K KRW and scrapped the hard floor. This post explains why MBK’s still holding the upper hand.

Sanghyun Park

Korea Zinc: Plans to Buy Back and Cancel Shares Worth 2.7 Trillion Won + Team Up with Bain Capital

On 4 October, Korea Zinc announced that of the 2.7 trillion won of the buyback tender offer, 1.5 trillion won will be financed with internal funds....

Douglas Kim

Legal Chaos Amid Young Poong Filing a Criminal Complaint Against Korea Zinc's BOD and What's Next?

If Korea Zinc proceeds with the share buyback at higher price than the tender offer price by MBK, there are two main scenarios.

Douglas Kim

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

MBK Raises Tender Offer Price of Korea Zinc to 830,000 Won

On 4 October, MBK Partners announced that it is raising its tender offer price of Korea Zinc from 750,000 won to 830,000 won, matching Choi...

Douglas Kim

MBK Raised Korea Zinc's Tender Price to ₩830K and Dropped the Hard Floor, Keeping the Upper Hand

MBK bumped up the tender price for Korea Zinc to 830K KRW and scrapped the hard floor. This post explains why MBK’s still holding the upper hand.

Sanghyun Park

Korea Zinc: Plans to Buy Back and Cancel Shares Worth 2.7 Trillion Won + Team Up with Bain Capital

On 4 October, Korea Zinc announced that of the 2.7 trillion won of the buyback tender offer, 1.5 trillion won will be financed with internal funds....

Douglas Kim

Legal Chaos Amid Young Poong Filing a Criminal Complaint Against Korea Zinc's BOD and What's Next?

If Korea Zinc proceeds with the share buyback at higher price than the tender offer price by MBK, there are two main scenarios.

Douglas Kim

Korea Zinc (010130 KS)'s ₩830,000/Share Offer. Mmm ...

Korea Zinc (KZ) is trading ~14% below terms. The market evidently sees KZ's Offer facing legal issues; versus MBK's cleaner approach. I'd buy KZ...

David Blennerhassett