Hanmi Pharm "Will Greatly Help Enhance Shareholder Value"
The family management dispute within Hanmi Pharm Group, which has persisted throughout this year, has entered its final stage. The '4-Party Alliance,' the largest shareholder group of Hanmi Science, announced on the 26th that they have agreed to end the management dispute with Lim Jong-yoon, an inside director of Hanmi Science from the 'brothers' side.
According to Hanmi Pharm on the day, the 4-Party Alliance will purchase 5% of the 11.79% shares held by Director Lim, with Chairman Shin Dong-guk and Ladepangs Partners acquiring the shares. They reached an agreement on three key points: ending the management dispute, stabilizing the group's governance, and establishing a sustainable management system centered on professional managers. Director Lim and the 4-Party Alliance also agreed to withdraw all civil and criminal lawsuits filed against each other during the management dispute and to cooperate to enhance the group's corporate value and ensure stable management.
Hanmi Pharm Group decided in January, led by Chairman Song, wife of the late Chairman Lim Seong-gi, and Vice Chairman Lim, their daughter, to sell their Hanmi Science shares to OCI Group to secure funds for inheritance tax related to the late Chairman Lim Seong-gi. However, the brothers Lim Jong-yoon and Jong-hoon (CEO of Hanmi Science) opposed this decision, sparking the family management dispute. The mother-daughter side and the brothers side subsequently clashed in regular and extraordinary shareholders' meetings of Hanmi Science and Hanmi Pharm, engaging in vote battles and filing numerous complaints against each other with the police, leading to extreme confrontation.
During the dispute, the 4-Party Alliance formed by the mother-daughter side consists of Song Young-sook, Chairman of Hanmi Pharm Group; Lim Joo-hyun, Vice Chairman; Shin Dong-guk, Chairman of Hanyang Precision; and Ladepangs Partners. They hold 49.42% of the shares in Hanmi Science, the holding company of Hanmi Pharm Group. By purchasing 5% of Director Lim’s shares, the 4-Party Alliance will hold 54.42%, securing majority control of the group. Hanmi Science holds 41.42% of Hanmi Pharm shares.
However, Hanmi Pharm explained that the purchase of shares does not officially establish a 5-Party Alliance including Director Lim, as no joint stock holding agreement like the existing 4-Party Alliance has been made. Meanwhile, it is reported that Director Lim did not consult with his younger brother, Lim Jong-hoon, CEO of Hanmi Science, during the share sale and agreement process with the 4-Party Alliance. Therefore, the management dispute will be completely resolved only when the 4-Party Alliance also reaches an agreement with CEO Lim Jong-hoon. CEO Lim Jong-hoon stated on the day, "I was informed that my older brother (Director Lim) decided this out of frustration, realizing that continuing the dispute as it is would not be beneficial in many ways," adding, "We are in discussions."
A Hanmi Pharm official said, "Through this agreement, we expect to quickly stabilize the group's governance issues and largely resolve the overhang (potential large-scale stock sell-off) issue that has suppressed shareholder value for a long time." The official added, "This cooperation and harmony among major shareholders will greatly help not only to end the management dispute but also to enhance shareholder value. Going forward, Hanmi will pursue sustainable development toward becoming a 'Global Hanmi' with a unified direction, and we expect shareholder Lim Jong-yoon to actively support the 4-Party Alliance in this process."
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