Hahn & Co. Takes Helm at Namyang Dairy: Ending 60 Years of Family Ownership
Source: The DairyNews
In a significant corporate shakeup, Hahn & Co. has assumed control of Namyang Dairy Products, marking the end of six decades of family ownership within the dairy firm.
During the recent shareholders meeting at Namyang's headquarters in southern Seoul, executives from Hahn & Co. were appointed as key directors, accompanied by Lee Myung-Chul, chair of Institut Pasteur Korea, as an outside director.
The transition saw the departure of previous directors, including Hong Won-sik, the former chair of Namyang Dairy Products, amid prolonged disputes with Hahn & Co. over corporate governance.
Despite its prominent position in the dairy sector, Namyang encountered challenges post-2010, exacerbated by controversies such as a 2013 boycott stemming from unfair distributor practices and family involvement in drug scandals.
Responding to mounting pressure, Hong initially announced plans to sell his shares to Hahn & Co. in 2021, signaling his resignation. However, the plan was later retracted.
Following a court order in January, Hahn & Co. emerged as the primary shareholder, solidifying its control over the company.
Namyang has faced consecutive losses since 2020, reporting deficits of 77.9 billion won ($57.8 million) in 2021, 86.8 billion won in 2022, and 72.4 billion won in 2023.
Hahn & Co.'s acquisition strategy garnered acclaim with its successful takeover of Woongjin Foods, a local food company, ultimately selling it five years later at a price five times higher than the initial purchase.
The transition saw the departure of previous directors, including Hong Won-sik, the former chair of Namyang Dairy Products, amid prolonged disputes with Hahn & Co. over corporate governance.
Despite its prominent position in the dairy sector, Namyang encountered challenges post-2010, exacerbated by controversies such as a 2013 boycott stemming from unfair distributor practices and family involvement in drug scandals.
Responding to mounting pressure, Hong initially announced plans to sell his shares to Hahn & Co. in 2021, signaling his resignation. However, the plan was later retracted.
Following a court order in January, Hahn & Co. emerged as the primary shareholder, solidifying its control over the company.
Namyang has faced consecutive losses since 2020, reporting deficits of 77.9 billion won ($57.8 million) in 2021, 86.8 billion won in 2022, and 72.4 billion won in 2023.
Hahn & Co.'s acquisition strategy garnered acclaim with its successful takeover of Woongjin Foods, a local food company, ultimately selling it five years later at a price five times higher than the initial purchase.
