MBK "Using Past Investment Information of Koryo Ahn? ... Claim Detached from Reality"

MBK Partners has denied allegations that it used information obtained during an investment request process with Korea Zinc two years ago to pursue a hostile merger and acquisition (M&A).

On the 3rd, MBK stated, "Regarding the matter in May 2022 when Chairman Choi Yoon-beom's associate approached the ‘Special Situations’ division, one of MBK Partners' investment management units, requesting investment, Korea Zinc has made claims that are detached from reality."

MBK explained that its investment management is divided into two main divisions: the ‘Buy Out’ division, which acquires management rights, and the ‘Special Situations’ division, which handles minority equity investments, private bonds, and similar activities.

MBK emphasized that the ‘Buy Out’ and ‘Special Situations’ divisions are effectively separated, with a ‘Chinese Wall’ in place to block internal information exchange, and are strictly controlled through compliance monitoring. MBK noted, "The ‘Buy Out’ and ‘Special Situations’ divisions have different investment targets and strategies."

The party that conducted the public tender offer together with Young Poong, the largest shareholder of Korea Zinc, was MBK Partners' ‘Buy Out’ division. MBK stated, "The ‘Buy Out’ division has no connection to the investment proposal made by Chairman Choi’s associate in May 2022," and added, "Before the publication of articles raising suspicions by Korea Zinc, the ‘Buy Out’ division was unaware of the investment proposal from that associate and did not know what materials the ‘Special Situations’ team had received."

MBK further explained, "After the publication of the suspicious articles, under the review and approval of the internal compliance team, the ‘Special Situations’ division confirmed that the materials received from Korea Zinc were explanatory documents about the Troika Drive developed by BCG (a consulting firm) at the time, and that these materials were largely no different from those already disclosed on Korea Zinc’s website and IR materials," adding, "This matter was concluded without further action in June 2022."

MBK dismissed Korea Zinc’s claim that the ‘Buy Out’ division might have used the Troika Drive explanatory documents in the recent public tender offer as mere speculation and unfounded assertions stemming from a misunderstanding of MBK Partners.

This content was produced with the assistance of AI translation services.