MBK Partners Responds to Allegations by Korea Zinc with Clarity

MBK Partners Addresses Allegations from Korea Zinc

MBK Partners has recently issued a statement dismissing allegations made by Korea Zinc concerning a supposed breach of a Non-Disclosure Agreement (NDA). This response comes after Korea Zinc escalated its claims, and MBK Partners aims to clarify the situation to uphold its reputation.

Clarification of Structure and Practices

It's important to note that MBK Partners operates with a distinct separation between its various divisions. The Buyout Division focuses on acquiring controlling stakes in companies, while the Special Situations Division deals with minority equity investments and private debt investment strategies. These divisions operate independently, following strict protocols.

Legal Entities Are Separate

MBK Partners ensures that its Buyout Division and Special Situations Division are recognized as separate legal entities. This clear distinction is vital in maintaining the integrity of both divisions and ensuring proper management of confidential information.

Robust Information Barriers

The company has established strong “Chinese wall” protocols that prevent any internal information exchange. These barriers are crucial to maintaining independence and preventing any potential breaches of confidentiality. MBK Partners enforces these standards across all its offices located in major cities, including Seoul, Tokyo, Hong Kong, Shanghai, and Beijing.

No Breach of NDA Claims

Despite Korea Zinc's assertions, the Buyout Division had no involvement with or knowledge of the NDA that was signed between Korea Zinc and the Special Situations Division. This includes any references to the “Troika Drive memorandum” that Korea Zinc claims to have shared.

Allegations Lack Credibility

MBK Partners finds the claims made by Korea Zinc lacking in credibility, especially regarding the potential misuse of information from two years ago related to the Special Situations Division. The mention that this information could influence the current tender offer is not only illogical but contradicts standard business practices.

Concerns Over Ethical Standards

The way Korea Zinc has handled the situation is alarming. The public sharing of details surrounding the NDA, usually a confidential matter, brings up significant legal and ethical questions. Such actions could jeopardize the trust and integrity required in business relationships.

Commitment to Integrity

MBK Partners is committed to maintaining the highest standards of ethical conduct in all its dealings. The firm believes that transparency and integrity are cornerstones of successful business practices and will continue to uphold these values as it moves forward.

Conclusion

MBK Partners reiterates its stance against the unfounded allegations made by Korea Zinc. The firm remains focused on its core operations, ensuring its divisions operate independently and adhere to strict confidentiality agreements. The commitment to ethical practices and maintaining an environment of trust and transparency is paramount for MBK Partners as it navigates through these claims.

Frequently Asked Questions

What allegations were made against MBK Partners?

Korea Zinc alleged that MBK Partners breached a Non-Disclosure Agreement related to past dealings.

How does MBK Partners structure its divisions?

MBK Partners has separate divisions, namely the Buyout Division and Special Situations Division, which operate independently under strict information segregation policies.

What is the significance of the “Chinese wall” protocols?

The “Chinese wall” protocols ensure that confidential information remains within the correct division, preventing any unauthorized sharing between them.

What is MBK Partners’ stance on the allegations?

MBK Partners categorically denies any wrongdoing and asserts that the claims lack substance.

Why are the ethical concerns raised by the disclosure important?

Such disclosures challenge the trust and ethical standards essential for maintaining healthy business relationships and could have legal ramifications.

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