With about a month remaining until the extraordinary general meeting of Korea Zinc, MBK Partners is reportedly making a last-ditch effort to expand its equity. It has raised its voting equity stake to nearly 46.7%, with some shares nearing an individual price of 2 million won.
MBK Partners' special purpose corporation (SPC) Korea Corporate Investment Holdings announced on the 19th that it acquired 234,451 shares (1.13%) of Korea Zinc from last month 12th to this month 18th through a discretionary trading (CD) method. The total expense for the share purchase amounted to 295 billion won.
MBK Partners previously secured 5.32% of Korea Zinc’s equity through a public purchase until October 14 and added 1.36% through market purchases from October 18 to November 11. Including the recently acquired equity, MBK Partners now holds 7.82% based on the number of shares issued and 8.9% based on voting rights. The combined equity held by MBK Partners and Young Poong is about 40.97% based on the number of shares issued and 46.7% based on voting rights.
According to the Financial Supervisory Service’s electronic disclosure, MBK Partners bought Korea Zinc shares nearly every day between last month 12th and this month 18th, excluding just two days (November 13 and December 5). The company purchased as few as 4,000 shares to as many as 19,000 shares in a single day.
Notably, the price per share has risen to nearly 2 million won. On the 6th, MBK Partners bought 10,000 shares of Korea Zinc, with the price per share on that day being 1,942,594 won. On that day, Korea Zinc's stock price surged to as high as 2,407,000 won, briefly surpassing Hyundai Motor to become the fifth largest company by market capitalization in South Korea.
MBK Partners announced that it secured funds for stock purchases through the sixth blind fund and investment profits, as well as loans from NH Investment & Securities. The borrowing amount is 1.715 trillion won (limit amount).
It appears that Chairman Choi Yoon-beom's side, who is competing with MBK Partners and Young Poong for Korea Zinc, has not made any additional market purchases after the 4th. At that time, the stock purchase price for Young Poong Precision Corporation rose to 1.64 million won.
Chairman Choi's side is estimated to hold around 40% of the voting equity along with friendly shareholders. The two sides are expected to confront each other over the board of directors election and charter amendments at the extraordinary general meeting scheduled for January 23rd next year.