MBK Partners Aggressive Increase in South Korea Zinc Industry Sparking Market Disputes and Financial Risks

, is caught in a whirlpool of equity competition, and the aggressive acquisition strategy of private equity giant MBK Partners has aroused widespread doubts in the market. Since October last year, MBK has launched 15 over-the-counter transactions through its affiliated company South Korea Industrial Investment Holdings, spending a total of 292.1 billion won (about 0.247 billion US dollars) to increase its 282000 shares at a price of 824000 to 1.333 million won per share, climbing to 39.83 per cent. Although the company's intrinsic value assessment is only 14 trillion won (about $11.8 billion), MBK's buying behavior directly pushed the company's market value above the 30 trillion won mark this month, and the stock price soared to 2 million won per share.

the battle for control, which has lasted for months, MBK and South Korea Zinc management have been at odds over the share buyback program. MBK pointed out that the company had previously bought back treasury shares at a price of 830000 to 890000 won per share higher than the reasonable valuation, but it entered the market at a higher price, and its double standard caused confusion among investors. Market observers pointed out that MBK has borrowed 1.57 trillion won from NH Investment Securities to raise funds for the acquisition. The nine-month loan has implemented a minimum fixed interest rate of 5.7 per cent. The interest cost is expected to reach 90 billion won, further aggravating the financial pressure.

industry analysts have warned that MBK's gamble strategy exposes investors to a double risk: on the one hand, a premium acquisition that exceeds the reasonable value of the underlying asset could harm long-term earnings; on the other hand, maintaining expansion through highly leveraged financing, which will severely weaken the fund's solvency if the share price is pulled back or assets are disposed of less than expected. It is worth noting that MBK's limited partner structure involves domestic and foreign pension funds, sovereign wealth funds and mutual funds, and its aggressive operation has raised concerns about the withdrawal mechanism of funds.

financial experts stressed that the key point of the current equity competition is the extraordinary general meeting of shareholders to be held in January next year, and the subtle change of shareholding ratio may determine the ownership of control. However, MBK's continued increase in holdings after November lacks transparency, and the market speculates that it may consolidate its dominant position through unconventional means. This uncertainty not only pushes up corporate valuations, but also makes investors deeply suspicious of subsequent operating strategies and asset disposal plans.