Namyang Dairy sold to Hahn & Company, ending 60 years of family control
Source: The DairyNews
Hahn & Company, a Korean private equity firm, has taken over Namyang Dairy Products, the country's third-largest dairy company, putting an end to a two-year legal dispute over management rights and the founding family's six-decade reign of control.
In a landmark ruling, the Supreme Court has approved the transfer of a majority stake in Namyang Dairy Products, marking the conclusion of a two-year legal battle and ending the family's six-decade control.
Hahn & Company, a Korean private equity firm, emerged victorious in the dispute that began with Chairman Hong Wonsik's resignation in 2021, which was triggered by Namyang's misleading claims that its Bulgaris yogurt could prevent Covid-19. Hong, in response to public criticism, agreed to sell his 52.63 percent ownership stake, represented by 378,938 shares, to Hahn & Company for 310.7 billion won ($237.6 million).
The decision solidifies Hahn & Company's position in Namyang Dairy Products and sets the stage for a new era, emphasizing operational stability and efforts to restore consumer trust. The move follows a series of controversies and financial challenges faced by the dairy company in recent years.
Hahn & Company, a Korean private equity firm, emerged victorious in the dispute that began with Chairman Hong Wonsik's resignation in 2021, which was triggered by Namyang's misleading claims that its Bulgaris yogurt could prevent Covid-19. Hong, in response to public criticism, agreed to sell his 52.63 percent ownership stake, represented by 378,938 shares, to Hahn & Company for 310.7 billion won ($237.6 million).
The decision solidifies Hahn & Company's position in Namyang Dairy Products and sets the stage for a new era, emphasizing operational stability and efforts to restore consumer trust. The move follows a series of controversies and financial challenges faced by the dairy company in recent years.
