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NH Investment Securities |
[Alpha Biz= Paul Lee] South Korean prosecutors have widened their investigation into alleged insider trading and unfair practices tied to the management dispute involving Korea Zinc, MBK Partners, and Young Poong Group, by raiding NH Investment & Securities.
According to legal and financial industry sources on April 24, the Financial and Securities Crime Joint Investigation Unit at the Seoul Southern District Prosecutors’ Office conducted a search and seizure operation targeting an NH Investment & Securities employee suspected of wrongdoing.
NH Investment & Securities confirmed the investigation but emphasized that it pertains to “an individual employee” and not the company as a whole. However, the firm acknowledged the case is linked to the Korea Zinc management battle. It also clarified that the raid was not directly related to its roles in the public tender offer or acquisition financing.
Last year, NH Investment & Securities acted as the lead manager in the public tender offer jointly initiated by MBK Partners and Young Poong Group to gain control of Korea Zinc. The firm also provided a bridge loan to support the deal.
Earlier the same day, prosecutors raided 12 locations, including MBK Partners’ headquarters in Jongno, Seoul, and the residences of its executives. The investigation focuses on whether MBK used undisclosed information for illicit trading during the takeover dispute.
With several individuals at MBK reportedly under scrutiny for potential insider trading, legal experts expect the probe to intensify in the coming weeks.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
