Young Poong Precision loses ground after MBK Partners’ tender offer closes

Korea Zinc chairman Choi Yoon-beom

Young Poong Precision Corp. saw its shares fall nearly 9 percent on Tuesday morning, a day after MBK Partners Ltd. closed its tender offer.

Shares of Young Poong Precision were trading at 28,000 won ($21) as of 11:35 a.m., down 8.94 percent from the previous session.

Young Poong Precision holds a 1.85 percent stake in Korea Zinc Co.

According to industry sources, the tender offer initiated by MBK Partners, priced at 30,000 won per share, garnered only 830 shares, far below the target of 6.84 million shares, or 43.43 percent of the total outstanding shares.

Despite falling short of its target, MBK Partners, which had already secured a 5.43 percent stake in Korea Zinc through a separate tender offer with Young Poong Co., now holds a strategic position while also reducing its costs.

Meanwhile, Korea Zinc Chairman Choi Yoon-beom has his own tender offer for Young Poong Precision, which runs until October 21.

Through a special purpose company, Jerico Partners Co., Choi and his allies are offering 35,000 won per share, aiming to acquire 5.51 million shares, or 35 percent of the total outstanding shares, requiring 193.25 billion won in total if fully subscribed.

Should investor participation exceed the target, the shares will be purchased on a pro-rata basis.

Korea Zinc’s stock saw a rise, trading at 813,000 won, up 2.52 percent, as of 11:39 a.m.

The ongoing battle between the Young Poong-MBK alliance and Choi’s camp, backed by Bain Capital, has increased the Young Poong-MBK consortium’s stake in Korea Zinc from 33.13 percent to 38.47 percent.

Choi’s tender offer for Korea Zinc’s treasury shares, priced at 890,000 won, is scheduled to close on October 23.

If fully subscribed, the alliance’s stake would rise to 48 percent, as Korea Zinc has announced plans to cancel the treasury shares to increase the value of remaining stock.

Young Poong shares fell 2.56 percent to 419,000 won as of 11:40 a.m.

Meanwhile, YES24, an online book retailer, continued its rally on Tuesday following the news that novelist Han Kang became the first Korean to win the Nobel Prize in Literature.

As of 11:40 a.m., YES24 shares surged 16.53 percent to 9,660 won, after reaching a 52-week high earlier in the session at 10,380 won.

The company had already seen upper-limit gains in trading on Friday and Monday. It marks the third consecutive session of rapid gains.

However, other publishing-related stocks, which had previously surged on the Nobel Prize news, lost ground.

Shares of Hansae YES24 Holdings fell 15.39 percent to 6,430 won as of 11:42 a.m., Hankuk Paper MFG declined 10.89 percent, Moorim Paper dipped 6.25 percent, and Samsung Publishing fell 8.64 percent.