OCI Merger Movement... Hanmi Jang and Cha Nam File Injunction Request Opposing It

"Submission of Injunction Petition to Prohibit New Share Issuance"
"Management Dispute Situation... Invalidity of Third-Party Allotment Capital Increase"

Amid the integration movement between Hanmi Pharmaceutical Group and OCI Group, Lim Jong-yoon and Lim Jong-hoon, presidents of Hanmi Pharmaceutical, filed an injunction against the integration. The two are the eldest and second sons, respectively, of the late Lim Sung-gi, the founder of Hanmi Pharmaceutical.

On the same day, President Lim announced through the social media of his personal company, Kori Group, that "Lim Jong-yoon and Lim Jong-hoon of Hanmi Science jointly submitted a petition for an injunction to prohibit new share issuance to the Suwon District Court today." He also stated that they have appointed the law firm Jipyung as their legal representative.

[Image source=Yonhap News]

On the 12th, Hanmi Pharmaceutical Group and OCI Holdings agreed on integration through mutual share acquisition. According to the agreement, OCI Holdings will acquire a 27.0% stake (including paid-in capital increase) in Hanmi Science, the holding company of Hanmi Pharmaceutical Group, by investing 770.3 billion KRW, becoming the largest shareholder. Lim Joo-hyun, president and eldest daughter of the late founder Lim Sung-gi, and Song Young-sook, chairwoman of Hanmi Pharmaceutical Group and wife of the founder, will acquire a 10.4% stake in OCI Holdings.

Regarding this, earlier President Lim Jong-yoon claimed that "the third-party allotment paid-in capital increase conducted amid a management dispute is invalid," and announced legal action. He also argued that "having Lee Woo-hyun, chairman of OCI Holdings, and Lim Joo-hyun as co-CEOs of the integrated holding company means transferring part of the management rights, which is a matter for the shareholders' meeting resolution."