Namyang Diary owner family ordered by court to hand over controlling stake to PEF Hahn & Co

[Photo by Han Joo-hyung]

South Korean private equity firm Hahn & Company has won its lawsuit against Namyang Dairy Products for unilaterally terminating a deal over the controlling stake in the dairy company.

The Seoul Central District Court on Thursday ruled in favor of local private equity firm Hahn & Company, demanding the chairman and the owner family of Namyang Dairy to hand over the controlling stake under agreed terms.

Hahn & Company signed a share purchase agreement (SPA) in May last year to acquire a 53 percent controlling stake in Namyang Dairy held by former chairman Hong Won-sik and his family members for 310.7 billion won ($220 million) but the dairy company called off the deal on September 1.

Hong¡¯s representatives claimed that they terminated the contract because Hahn & Company interfered with management and violated the confidentiality clause.

The court, however, ruled that the terms of the contract were valid and effective.

After the ruling, Hong¡¯s representatives announced that they plan to immediately appeal the decision.

Another case Hong filed against Hahn & Company seeking damage of 31 billion won for liability in the collapse in the deal remains pending.

Shares of Namyang Dairy closed down 5.33 percent at 417,500 won on Thursday.

[¨Ï Maeil Business Newspaper & mk.co.kr, All rights reserved]