MBK "Korea & Company Tender Offer Underway... Aiming to Improve Corporate Governance"

MBK Official Statement Released
"Decline in Corporate Value Due to Poor Governance and Major Shareholder Legal Risks"

MBK Partners, currently conducting a tender offer for Hankook & Company, has repeatedly emphasized the judicial risks faced by the major shareholder and the need for corporate governance improvement.

On the 22nd, MBK Partners stated in a press release, "Despite Hankook & Company having solid fundamentals and sustainable growth potential, its corporate value has continuously declined due to poor governance and judicial risks associated with the major shareholder. Therefore, we intend to improve corporate governance through this tender offer."

MBK further explained, "The only reason why the major shareholders holding more than 30% of Hankook & Company’s shares, who have declared they will not be involved in management, are cooperating with MBK is to establish transparent corporate governance and enhance shareholder value and corporate value under a professional management system."

Full Statement from MBK Partners

We would like to share the official position of MBK Partners Special Situations (hereinafter MBKP SS) regarding the tender offer for Hankook & Company as follows.

'ESG management' is a global trend and an unstoppable movement. Among its components, governance, which is the corporate governance aspect most vulnerable for domestic companies in the global capital market and considered a discount factor for corporate value, is the most important and urgent issue.

Despite Hankook & Company having solid fundamentals and sustainable growth potential, its corporate value has continuously declined due to poor governance and judicial risks related to the major shareholder. Therefore, we aim to improve corporate governance through this tender offer.

In particular, the reason why the major shareholders holding more than 30% of Hankook & Company’s shares declared they would not be involved in management yet chose to cooperate and support MBKP SS is solely to establish transparent corporate governance and enhance shareholder value and corporate value under a professional management system.

It is very unusual to receive the support and backing of major shareholders holding more than 30% of shares.

We believe that the fact that this tender offer was attempted for the first time in the domestic capital market with the purpose of improving corporate governance, rather than for common objectives such as delisting or mergers and acquisitions, holds significant meaning in terms of expanding the scope of the capital market.

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