Former Chairman Hong Won-sik: "Rumors of Namyang Dairy Sale Collapse Are Groundless"

Hong Won-sik, chairman of Namyang Dairy Products, recently issued a public apology regarding the controversy caused by the announcement that their dairy product, Bulgari, has an effect in suppressing COVID-19. On the 4th, he announced his resignation as chairman after apologizing to the public at the main auditorium of Namyang Dairy Products headquarters on Dosan-daero, Gangnam-gu, Seoul. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Seungjin Lee] Hong Won-sik, former chairman of Namyang Dairy Products, recently dismissed rumors of a failed sale as "completely unfounded."

According to Namyang Dairy Products on the 17th, former chairman Hong claimed, "Before the extraordinary shareholders' meeting (July 30), I already informed the Han & Company side that 'the transaction closing date is not July 30, and more preparation is needed for the transaction closing, so the transaction cannot be closed on that day.'"

Namyang Dairy Products suddenly postponed the extraordinary shareholders' meeting originally scheduled for the 30th of last month to September 14. The shareholders' meeting was initially planned to propose and approve the transfer of management rights, complete the payment of the stock purchase price, and finalize the stock sale procedures on that day.

Regarding the postponement of the shareholders' meeting, Han & Company stated, "The fact that former chairman Hong postponed the extraordinary shareholders' meeting without any consultation or explanation with us is a clear breach of contract," and added that reviewing all options, including legal action, is inevitable.

In response, Chairman Hong emphasized, "I never intended to cause the sale with Han & Company to fail," and said, "Since the parties were not ready to close the transaction, the shareholders' meeting could not be resolved, so the meeting was postponed and continued, and there is no change in our position."

He continued, "Refuting Han & Company's unfair claims one by one would mean disclosing detailed matters that occurred during the transaction in a private contractual relationship," and added, "As a contracting party, I believe this is neither appropriate nor courteous."

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