MBK Side: "Korea Zinc Confirmed to Have Borrowed Entire Funds for Treasury Stock Tender Offer"

On the 4th, MBK Partners announced that "Korea Zinc is fully relying on large-scale short-term borrowing to carry out its tender offer for treasury shares."

According to the tender offer report submitted by Korea Zinc on the same day, Korea Zinc reported that it will invest 2.6635 trillion KRW in cash for this treasury stock tender offer. Of this cash, 1.5 trillion KRW, which the company prepared in advance through borrowing as its own funds, and 1.1634 trillion KRW in borrowings were submitted in the form of a Letter of Commitment (LOC).

The 1.5 trillion KRW that Korea Zinc referred to as its own funds consists of 400 billion KRW in corporate commercial paper (CP) issued under the name of working capital and 1 trillion KRW in high-interest short-term bonds issued to Meritz Securities, which were converted into cash and deposited into the company. MBK stated that an additional 100 billion KRW from the company's existing cash holdings was added to this amount.

MBK explained, "The 1.5 trillion KRW borrowed from Mirae Asset Securities and Hana Bank has not yet been deposited and was submitted in the form of a letter of commitment."

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