Namyang Dairy Products to Buy Back 20 Billion KRW Worth of Shares to "Enhance Shareholder Value"

Expected Acquisition by December 24
"Commitment to Responsible Management"

Namyang Dairy Products, which has welcomed the private equity firm Hahn & Company (Hahn & Co) as its new owner, is set to repurchase its own shares to ensure responsible management and enhance shareholder value.

On the 24th, Namyang Dairy Products announced that its board of directors decided to enter into a trust contract for the acquisition of treasury stocks worth 20 billion KRW. The company signed a contract with NH Investment & Securities and plans to acquire its own shares by December 24. The company explained that the purpose of the contract is "to stabilize the stock price and enhance shareholder value."

Signboard at the entrance of Namyang Dairy Products headquarters
[Image source=Yonhap News]

A Namyang Dairy Products official stated, "Despite the challenging market environment, including management dispute lawsuits and intensified competition in the dairy industry, we have been steadily working to improve corporate value by reducing losses through improved business strategies." He added, "This share repurchase reflects our commitment to responsible management and enhancing shareholder value as management normalization becomes visible following the recent change in management control." He further noted, "We will faithfully implement mid- to long-term shareholder return policies and carry out various measures to enhance shareholder value."

In the first quarter of this year, Namyang Dairy Products reported consolidated sales of 234.2 billion KRW, a 2.4% decrease from 240 billion KRW in the same period last year. However, operating losses during the same period decreased by 52.9%, from 15.7 billion KRW last year to 7.4 billion KRW.