WSJ reports on Korea Zinc management dispute… Korea Zinc “Concerned about inclusion in Chinese supply chain” MBK “No sale of Chinese companies”
Lee Bok-hyeon “Strict action against illegal activities”… Korea Zinc, MBK “Stop spreading rumors” war of nerves
The war of nerves between Korea Zinc, Youngpoong, and private equity fund MBK Partners over the management rights of Korea Zinc (010130) continues over the weekend. With the tender offer deadline approaching in five days, a war of words appears to be taking place over foreign media reports.
On the 28th (local time), the Wall Street Journal (WSJ) reported on the management rights dispute between Korea Zinc, Youngpoong, and MBK in an article titled ‘$1.7 billion acquisition tussle sparked by fears of China.’
WSJ referred to Korea Zinc’s claim that core technology could be leaked overseas if Youngpoong and MBK take over management rights, and said, “The confrontation over Korea Zinc shows that the mere possibility of technology leaking to China can complicate global supply chain transactions.” It shows,” the report reported.
He continued, “Despite the West’s efforts, China’s influence is expanding in key minerals such as nickel, cobalt, and lithium,” and “Zinc is one of the minerals considered essential in the United States.” According to Wood Mackenzie, Korea Zinc’s zinc production accounts for 8.5% of global production.
In response to the WSJ report, Korea Zinc issued a statement on the 29th and said, “MBK and Youngpoong have denied that they will sell Korea Zinc to China even if they acquire it amid various concerns growing overseas,” adding, “However, in addition to the sale, separate sale and core technology.” “We have avoided mentioning specific cases such as sales and technology sharing,” he pointed out.
He continued, “There are concerns even in Korea that if MBK acquires Korea Zinc, Korea Zinc’s all-in-one nickel smelter, which is being built for the first time in the world, could be included in the Chinese supply chain.”
Ki-deok Park, CEO of Korea Zinc, said, “The future of Korea Zinc, which is dominated by a coalition of loss-making companies and speculative private equity funds, is as clear as day.” “Even assets will be indiscriminately damaged,” he claimed.
In response to this, MBK countered, saying, “MBK has never sold a domestic company to a Chinese company since its establishment,” and added, “We view the investment in Korea Zinc as a long-term investment of approximately 10 years.”
Meanwhile, the Financial Supervisory Service held a meeting of vice presidents on the 27th to discuss pending issues related to the tender offer of listed companies. MBK and Youngpoong’s tender offer for Korea Zinc stocks will close on the 5th.
Lee Bok-hyeon, head of the Financial Supervisory Service, said, “Tender buyers, target companies, office handlers, and other related parties need to comply with the principles of fair competition and keep in mind that all procedures can be conducted legally in the future tender offer process,” adding, “Unfounded rumors related to the tender offer.” “We will conduct market surveillance to determine whether unfair transactions, such as acts that disrupt market order through the spread of rumors, have occurred, and we will apply a zero-tolerance principle to take strict action against any illegal acts detected,” he requested.
Korea Zinc, Youngpoong, and MBK engaged in a war of nerves with each other, demanding that they not spread unfounded rumors despite the Financial Supervisory Service’s instructions.
Targeting MBK and Youngpoong, Korea Zinc said, “While conducting the tender offer, please immediately stop spreading unfounded rumors and hearsay information, such as misleading or distorting the company’s corporate performance, value, and management ability of the company.” He said.
MBK also issued a statement, saying, “Unfounded rumors and rumors have been widely spread that MBK is a Chinese fund, that most of the capital is Chinese, that (Korea Zinc) will be sold to China, and that technology will be leaked to China.” Unfounded rumors can cause investors to misjudge or misunderstand, and may constitute acts that disrupt market order. “Stop it immediately,” he countered.
(Seoul = News 1)
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2024-09-30 02:58:25