[Asia Economy Reporter Seungjin Lee] The sale process of Namyang Dairy Products has been abruptly postponed.
On the 30th, Namyang Dairy Products announced that the extraordinary general meeting of shareholders scheduled for that day would be postponed to September 14. At the extraordinary general meeting, Namyang Dairy Products had planned to propose agenda items including amendments to the articles of incorporation and the appointment of new directors such as Yoon Yeo-eul, Chairman of Hahn & Company.
The owner family, including former Namyang Dairy Products Chairman Hong Won-sik, signed a stock purchase agreement on May 27 to sell 53% of shares to Hahn & Company. However, the payment deadline is August 31, and Hahn & Company has not yet made the payment.
In response, Hahn & Company immediately issued a statement of protest. Hahn & Company stated, "We deeply regret that at today's extraordinary general meeting of Namyang Dairy Products, the agenda for the transfer of management rights was not even proposed, and that the meeting was postponed for six weeks solely at the unilateral will of the current major shareholder, the seller."
They added, "On May 27, Hahn & Company signed a stock purchase agreement to secure management rights shares from former Namyang Dairy Products Chairman Hong Won-sik and the owner family, completed all prior procedures including approval of the merger by the Fair Trade Commission, and prepared payment for the stock purchase scheduled for today."
According to Hahn & Company, both parties convened the extraordinary general meeting today to finalize the transaction. Namyang Dairy Products also held a board meeting on the 15th of this month and decided to hold the extraordinary general meeting today for the transfer of management rights.
Hahn & Company claimed, "On the day of the extraordinary general meeting, the seller reversed their position and postponed the meeting for six weeks without consultation with the buyer or any reasonable cause. Despite repeated requests from the buyer, the seller has not appeared at the agreed transaction closing location as of this time."
Hahn & Company stated, "This is a clear breach of the stock purchase agreement, and Hahn & Company inevitably must consider all possible responses including legal action."
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