Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Event-Driven

<ul>
<li>Choi family has launched a counter tender offer for Young Poong Precision at the tender offer price of 30,000 won (20% higher than MBK's 25,000 won tender offer price). </li>
<li>The tender offer involves a plan to acquire 3,837,500 shares (24.36% of outstanding shares) of Young Poong Precision.</li>
<li>All eyes are on the court’s decision on the injunction application for ‘prohibition of acquisition of treasury stocks by Korea Zinc’, which is expected to be announced on 2 October.</li>
</ul>


Choi family has launched a counter tender offer for Young Poong Precision at the tender offer price of 30,000 won (20% higher than MBK's 25,000 won tender offer price). 
The tender offer involves a plan to acquire 3,837,500 shares (24.36% of outstanding shares) of Young Poong Precision.
All eyes are on the court’s decision on the injunction application for ‘prohibition of acquisition of treasury stocks by Korea Zinc’, which is expected to be announced on 2 October.


Choi Family Launches a Counter Tender Offer for Young Poong Precision

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>Choi aims to acquire 3.84 million shares (24.36%) of Young Poong Precision at ₩30,000 each, with a tender period from October 2 to November 1, managed by Hana Securities.</li>
<li>Seoul Economic Daily may not be as prominent, but they reliably scoop this type of news, making it likely Choi will announce their counter-tender for Young Poong Precision tomorrow.</li>
<li>MBK targets the full 49.14% stake, while the Choi family seeks about half, creating proration risk, which may still make MBK's lower offer more appealing to shareholders.</li>
</ul>


Choi aims to acquire 3.84 million shares (24.36%) of Young Poong Precision at ₩30,000 each, with a tender period from October 2 to November 1, managed by Hana Securities.
Seoul Economic Daily may not be as prominent, but they reliably scoop this type of news, making it likely Choi will announce their counter-tender for Young Poong Precision tomorrow.
MBK targets the full 49.14% stake, while the Choi family seeks about half, creating proration risk, which may still make MBK's lower offer more appealing to shareholders.


Choi Drops a Counter-Tender for Young Poong Precision at ₩30,000 Before the Market Bell Tomorrow

<ul>
<li>Our NAV valuation of Young Poong Precision suggests NAV of 325 billion won or NAV per share of 20,657 won which is 70% higher than current price.</li>
<li>Young Poong Precision tender offer could become one of the most important case studies for future tender offers in Korea. </li>
<li>The biggest component of the NAV is Young Poong Precision's 1.85% stake in Korea Zinc which is worth 255 billion won (133% of its current market cap). </li>
</ul>


Our NAV valuation of Young Poong Precision suggests NAV of 325 billion won or NAV per share of 20,657 won which is 70% higher than current price.
Young Poong Precision tender offer could become one of the most important case studies for future tender offers in Korea. 
The biggest component of the NAV is Young Poong Precision's 1.85% stake in Korea Zinc which is worth 255 billion won (133% of its current market cap). 


NAV Valuation of Young Poong Precision and A Case Study for Future Tender Offers in Korea

<ul>
<li>After the market close on 12 September, Hankyung Business Daily reported that MBK Partners plans to conduct a tender offer of 43.43% stake in Young Poong Precision.</li>
<li>The tender offer price is 20,000 won per share (113% higher than the closing price on 12 September). </li>
<li>Choi family currently controls Young Poong Precision. MBK plans to secure a controlling stake and obtain voting rights for the 1.85% stake in Korea Zinc held by Young Poong Precision.</li>
</ul>


After the market close on 12 September, Hankyung Business Daily reported that MBK Partners plans to conduct a tender offer of 43.43% stake in Young Poong Precision.
The tender offer price is 20,000 won per share (113% higher than the closing price on 12 September). 
Choi family currently controls Young Poong Precision. MBK plans to secure a controlling stake and obtain voting rights for the 1.85% stake in Korea Zinc held by Young Poong Precision.


Tender Offer of 43.4% Stake in Young Poong Precision by MBK

<ul>
<li>There is likely to be a proxy fight for the control of Korea Zinc (010130 KS) between MBK/Young Poong alliance and Chairman Choi/Bain Capital alliance in January 2025. </li>
<li>Young Poong Precision announced that it will acquire 39,254 shares of Korea Zinc. Post this purchase, Young Poong Precision will own a 2.11% stake in Korea Zinc (up from 1.92%).</li>
<li>FSS Governor Lee Bok-Hyun mentioned that the FSS is seriously reviewing a potential accounting issue related to environmental pollution at Young Poong.</li>
</ul>


There is likely to be a proxy fight for the control of Korea Zinc (010130 KS) between MBK/Young Poong alliance and Chairman Choi/Bain Capital alliance in January 2025. 
Young Poong Precision announced that it will acquire 39,254 shares of Korea Zinc. Post this purchase, Young Poong Precision will own a 2.11% stake in Korea Zinc (up from 1.92%).
FSS Governor Lee Bok-Hyun mentioned that the FSS is seriously reviewing a potential accounting issue related to environmental pollution at Young Poong.


A Proxy Fight for Korea Zinc in January 2025

South Korea

Young Poong Precision Corporation manufactures centrifugal pumps, valves, and anti-corrosion equipment.  The Company also manufactures mold products, and retails various machine parts and motors.

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Young Poong Precision (036560 KS)

Choi Family Launches a Counter Tender Offer for Young Poong Precision

Choi family has launched a counter tender offer for Young Poong Precision at the tender offer price of 30,000 won (20% higher than MBK's 25,000 won...

Douglas Kim

Choi Drops a Counter-Tender for Young Poong Precision at ₩30,000 Before the Market Bell Tomorrow

The Choi family is set to launch a counter-tender offer for Young Poong Precision at ₩30,000 right before the market bell tomorrow.

Sanghyun Park

NAV Valuation of Young Poong Precision and A Case Study for Future Tender Offers in Korea

Our NAV valuation of Young Poong Precision suggests NAV of 325 billion won or NAV per share of 20,657 won which is 70% higher than current price.

Douglas Kim

Tender Offer of 43.4% Stake in Young Poong Precision by MBK

Hankyung Business Daily reported MBK plans to conduct a tender offer of 43.4% stake in Young Poong Precision at tender offer price of 20,000 won...

Douglas Kim

A Proxy Fight for Korea Zinc in January 2025

MBK mentioned that Korea Zinc should conduct a stock split instead of a capital increase to increase shares trading liquidity. MBK stated that if...

Douglas Kim

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