[Featured Stock] Will the Management Dispute End? Namyang Dairy Products Up 8.88% Strong

The stock price of Namyang Dairy Products is strong on the 26th, as the Supreme Court ruling date for the multi-billion won merger and acquisition (M&A) lawsuit between Hong Won-sik, chairman of Namyang Dairy Products, and domestic private equity firm Hahn & Company is scheduled for the 4th of next month.

At 2:09 PM that day, Namyang Dairy Products' stock was trading at 576,000 won, up 47,000 won (8.88%) compared to the previous trading day.

Earlier, on May 27, 2021, Chairman Hong and his family signed a stock sale agreement to sell 53.08% of Namyang Dairy Products' shares to Hahn & Company for about 310.7 billion won. After the related details became known, expectations such as the resolution of 'owner risk issues' acted as positive factors, causing Namyang Dairy Products' stock price to soar. Later, Chairman Hong claimed that Hahn & Company did not fulfill the preconditions for the transaction and notified the contract termination on September 1 of the same year.

Hahn & Company filed a stock transfer lawsuit against Chairman Hong and his family, demanding "fulfillment of the obligation to close the transaction." The first and second trials ruled in favor of Hahn & Company. If the Supreme Court panel delivers the same judgment as the lower courts at the ruling scheduled for the 4th of next month, the management dispute over Namyang Dairy Products will come to an end.