[Featured Stock] Namyang Dairy Products Soars to Upper Limit Amid Management Rights Sale

[Asia Economy Reporter Song Hwajeong] Namyang Dairy Products surged to the upper price limit after the opening following news of a management rights sale.

As of 9:14 a.m. on the 28th, Namyang Dairy Products was trading at 570,000 KRW, up 131,000 KRW (29.84%) from the previous day.

Following the news that the domestic management participation private equity fund (PEF) Hahn & Company would acquire Namyang Dairy Products, the stock price rose to the maximum price increase limit in after-hours trading. Namyang Dairy Products announced after market close that it had signed a stock sale agreement with the largest shareholder. Accordingly, 378,938 shares held by former Namyang Dairy Products Chairman Hong Won-sik and the owner family were transferred to the private equity fund Hahn & Company, with the sale price amounting to 310.72916 billion KRW.

Namyang Dairy Products appears to have decided to sell its shares amid worsening management conditions and repeated controversies. Recently, former Chairman Hong resigned taking responsibility for the controversy over the COVID-19 reduction effect of its product, Bulgari, and two members of the Hong family resigned from their positions as registered directors.

Hahn & Company plans to implement strong governance improvements and management efficiency measures. Previously, Hahn & Company successfully acquired and normalized the management of mid-sized companies such as Woongjin Foods and SK Shipping.

This content was produced with the assistance of AI translation services.