Korea / Special Situations, Clepsydra Capital

Sanghyun Park

Korea / Special Situations

Korea / Special Sits, Pairs, Index Rebalancing

Clepsydra Capital

Investigate special situations, pairs, and index rebalancing trades in Korea.

Event-Driven

<ul>
<li>The key issue is if KIS can form a consortium. PEFs are saying the timeline is too tight and are concerned about the unclear exit strategy.</li>
<li>To make this work, PEFs need Choi's 15.65% Korea Zinc stake as collateral, but much of it is already tied up, limiting cash-raising potential.</li>
<li>They’ll likely continue to leak news to boost the price and buy time. But this will also push MBK to sweeten their offer sooner.</li>
</ul>


The key issue is if KIS can form a consortium. PEFs are saying the timeline is too tight and are concerned about the unclear exit strategy.
To make this work, PEFs need Choi's 15.65% Korea Zinc stake as collateral, but much of it is already tied up, limiting cash-raising potential.
They’ll likely continue to leak news to boost the price and buy time. But this will also push MBK to sweeten their offer sooner.


Digging into the News Flow on KIS Jumping in as the White Knight for Choi in the Korea Zinc Deal

<ul>
<li>MBK’s funding plan for Korea Zinc involves using ₩1T from their 6th Buyout Fund and the rest via debt. This setup leaves room to potentially increase the tender price.</li>
<li>The key question is if there’s enough upside at this price. MBK’s silence on abandoning Youngpoong suggests they’re unlikely to fully bail on Korea Zinc even if the tender fails.</li>
<li>With MBK’s strategy leaked, institutions may hesitate, fearing less price drop risk, suggesting a proxy battle could heat up. We should consider spread trading and post-tender price moves.</li>
</ul>


MBK’s funding plan for Korea Zinc involves using ₩1T from their 6th Buyout Fund and the rest via debt. This setup leaves room to potentially increase the tender price.
The key question is if there’s enough upside at this price. MBK’s silence on abandoning Youngpoong suggests they’re unlikely to fully bail on Korea Zinc even if the tender fails.
With MBK’s strategy leaked, institutions may hesitate, fearing less price drop risk, suggesting a proxy battle could heat up. We should consider spread trading and post-tender price moves.


Main Takeaways from Today’s MBK Press Briefing About the Korea Zinc Tender

<ul>
<li>As of today, it’s clear Choi is struggling to secure white knights, pushing him to double down on political lobbying to stay in the game.</li>
<li>Choi's aiming for the National Pension Service’s 7.57% voting rights, but with its legal neutrality, the chances of it caving to political pressure are slim.</li>
<li>MBK’s statement today shows confidence that Choi won’t get Fair Trade Commission approval, and that, like Hanwha and LG, Hyundai Motor won’t back him either.</li>
</ul>


As of today, it’s clear Choi is struggling to secure white knights, pushing him to double down on political lobbying to stay in the game.
Choi's aiming for the National Pension Service’s 7.57% voting rights, but with its legal neutrality, the chances of it caving to political pressure are slim.
MBK’s statement today shows confidence that Choi won’t get Fair Trade Commission approval, and that, like Hanwha and LG, Hyundai Motor won’t back him either.


Trading Insights from Today’s Dramatic Developments in the Korea Zinc Event

<ul>
<li>MBK can cut their target volume to 12% and, with 2 trillion won, raise the tender price to ₩800,000, leaving them a 20% cushion.</li>
<li>MBK’s tight schedule aims to hit the 6.98% target while minimizing price volatility and market risk by shortening the offer window.</li>
<li>MBK plans to sweeten the deal by about 20%, similar to Hankook, aiming for a 6.98% target with a 20% price hike from the start.</li>
</ul>


MBK can cut their target volume to 12% and, with 2 trillion won, raise the tender price to ₩800,000, leaving them a 20% cushion.
MBK’s tight schedule aims to hit the 6.98% target while minimizing price volatility and market risk by shortening the offer window.
MBK plans to sweeten the deal by about 20%, similar to Hankook, aiming for a 6.98% target with a 20% price hike from the start.


Insights on the Odds of MBK Ramping up the Tender Price by 20%

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

<ul>
<li>After the market close on 12 September, Maekyung Business Daily reported that MBK Partners will become the largest shareholder of Korea Zinc (010130 KS) along with Young Poong (000670 KS). </li>
<li>
<strong>MBK Partners, along with Youngpoong and advisor Jang Hyung-jin, also plans to conduct a tender offer of 14.6% stake in Korea Zinc.</strong> </li>
<li>The tender offer price for Korea Zinc is 660,000 won per share, which is 18.7% higher than the closing price on 12 September.</li>
</ul>


After the market close on 12 September, Maekyung Business Daily reported that MBK Partners will become the largest shareholder of Korea Zinc (010130 KS) along with Young Poong (000670 KS). 

MBK Partners, along with Youngpoong and advisor Jang Hyung-jin, also plans to conduct a tender offer of 14.6% stake in Korea Zinc. 
The tender offer price for Korea Zinc is 660,000 won per share, which is 18.7% higher than the closing price on 12 September.


MBK Partners and Jang Family Partner to Control Korea Zinc + Tender Offer of 14.6% of Korea Zinc

South Korea

Korea Zinc Co., Ltd. specializes in non-ferrous metal smelting industry.  The Company manufactures zinc ingots, electrolytic gold, silver, lead, sulfuric acid, and copper.  Korea Zinc provides its products to domestic and overseas markets.

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Korea Zinc (010130 KS)

Digging into the News Flow on KIS Jumping in as the White Knight for Choi in the Korea Zinc Deal

This post digs into the news flow about Korea Investment & Securities stepping in as the white knight for Choi’s side in the Korea Zinc deal.

Sanghyun Park

Main Takeaways from Today’s MBK Press Briefing About the Korea Zinc Tender

This post offers the rundown on the key takeaways from today’s MBK press briefing about the Korea Zinc tender, particularly from a trading...

Sanghyun Park

Trading Insights from Today’s Dramatic Developments in the Korea Zinc Event

This post offers trading insights into today’s dramatic developments involving both parties in the Korea Zinc tender offer event.

Sanghyun Park

Insights on the Odds of MBK Ramping up the Tender Price by 20%

This post offers insights into the likelihood of MBK Partners boosting the tender price by 20% for Korea Zinc shareholders.

Sanghyun Park

MBK Partners and Jang Family Partner to Control Korea Zinc + Tender Offer of 14.6% of Korea Zinc

Korea Zinc's price rose to 666,000 won (0.9% higher than tender offer price) on 13 Sept. 581k shares of Korea Zinc traded on 13 Sept. MBK plans to...

Douglas Kim

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