Hahn & Co. mulls legal action against Namyang Dairy for takeover delay
Buyout firm Hahn & Co. is considering legal action against Namyang Dairy's ex-Chairman Hong Won-sik for delaying the 310.7 billion won buyout without consent.
Namyang Dairy rescheduled the extraordinary shareholders meeting scheduled Friday morning to early September to have more time to contemplate the deal.
Hahn & Co., the second-largest Seoul-based private equity firm, expressed regret over Hong and other proposed sellers for their “unilateral” decision on the takeover attempt.
The equity firm said that Hong and two other proposed sellers owning a combined 52.6 percent stake had notified it of the delay just on Friday, without reasonable grounds.
Hahn & Co. alleged that Namyang Dairy is committing an apparent breach of stake sales and purchase contract and will consider all available options, including legal actions.
The contract had mandated the two parties close the deal by no later than Aug. 31.
Hahn & Co. had completed all proceedings, including antitrust approval and cash mobilization, before Friday.
Hong, the largest shareholder of Korea‘s No. 1 dairy maker, stepped down as chairman as he vowed to end his family’s dynastic control in May.
Namyang Dairy was under fire for falsely claiming its yogurt products’ efficacy in the treatment of COVID-19 that fluctuated its stock price.
The company was also accused of defaming domestic rivals and dumping leftover inventory to sales agents.