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Photo = FSS |
[Alpha Biz= Reporter Kim Jisun] As the Financial Supervisory Service (FSS) launched an investigation into potential unfair trading practices related to the tender offer for Korea Zinc, MBK Partners opted to refrain from making any official statements, focusing instead on assessing the situation. This move came in response to a more serious warning from the FSS compared to the regulator's earlier caution on September 29, which simply urged both sides to moderate their competition. The FSS is now investigating not only the tender offer process but also any potential violations of the Capital Markets Act that may arise subsequently.
Industry and financial sources predict that MBK, a domestic private equity firm that must continue its operations in Korea, is likely to be more affected by the financial regulator's intervention than Korea Zinc Chairman Choi Yun-beom. MBK’s announcement that it would not raise the tender offer prices for Korea Zinc and Young Poong Precision, after the FSS launched its investigation, reflects this sensitivity.
This move positions MBK as stepping back in the management rights battle for Korea Zinc, which has been ongoing for a month. Both sides had been locked in a "chicken game," with tender offer prices for Korea Zinc and Young Poong Precision set at 830,000 won and 30,000 won, respectively. Since a price increase seemed to be the ultimate winning strategy, MBK’s decision could be seen as an attempt to secure an exit strategy.
However, MBK is still maintaining its aggressive stance in some areas. In a statement, MBK emphasized that it would do everything possible to win the injunction case to halt Korea Zinc's buyback of its own shares, signaling that the firm is not entirely retreating from the fight.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
