Young Poong's Korea Zinc Call Option Prices 130,000 Won Below MBK's Final Tender Offer

Young Poong's call option on Korea Zinc shares carries an exercise price 130,000 won below MBK's final tender offer price of 830,000 won per share, a gap of about 317.8 billion won, Naver reported. The option became exercisable as of October 17, 2026.

How the Young Poong Call Option Was Priced

The management cooperation agreement signed in September 2024 by Young Poong, its adviser Chang Hyung-jin and Korea Corporate Investment Holdings, a special purpose company affiliated with MBK, initially linked the call option exercise price to the tender offer price. An amended agreement signed on September 25, 2024 changed the formula to 700,000 won per share plus annual interest of 5 percent. The next day, the tender offer price rose from 660,000 won to 750,000 won per share, and it was raised again to 830,000 won on October 4. The base exercise price stayed fixed at 700,000 won.

The option covers 2,444,546 Korea Zinc shares. Korea Zinc shares recently traded in the upper 900,000-won range, so Young Poong could receive less from MBK's exercise of the option than it would get by selling at market prices. KZ Precision, a Young Poong shareholder aligned with Korea Zinc, has filed a shareholder derivative lawsuit alleging Young Poong's management entered into an agreement unfavorable to the company. "The fact that a call option exercise price is lower than the market price does not, by itself, constitute a breach of fiduciary duty," a legal industry official said. "Any assessment must comprehensively consider the economic benefits Young Poong received and the premium associated with management control."

Earlier Rulings in the Young Poong Dispute

In August 2026, the Supreme Court upheld a lower court ruling that Korea Zinc's affiliate SMC is not a subsidiary under Korean law, rejecting its use to restrict Young Poong's voting rights, Koreatimes reported. Young Poong and MBK Partners also withdrew their lawsuit against Korea Zinc seeking cancellation of extraordinary general meeting resolutions, following the resignation of all four outside directors whose appointments had been ruled unlawful by the Seoul Central District Court, Businesskorea reported.

Fairness Reviews Elsewhere in the Sector

Halper Sadeh LLC said on October 18, 2026 that it is investigating whether Bumble Inc. Is obtaining a fair price for shareholders in its $6.05 per share sale to Ithaca Holdings, alleging potential securities law violations and fiduciary breaches, FinancialContent Business Page reported. Bronstein, Gewirtz & Grossman, LLC said the same day it is investigating potential claims on behalf of iRhythm Technologies stockholders who purchased securities before January 11, 2022, The future of trading reported.

What Comes Next for the Option

MBK said it cannot exercise its call option on Korea Zinc shares until it recovers its investment, as the option has not been exercised, Naver reported. The contract allows exercise after two years or when a named director holds a majority, but exercise is not automatic.