Han&Co "Namyang Dairy Products, Contract Valid"‥Chairman Hong's Side Cannot Sell Shares (Comprehensive)

[Asia Economy Reporter Park So-yeon] Han & Company immediately issued a rebuttal statement saying "the contract is still valid" in response to Namyang Dairy Products Chairman Hong Won-sik's announcement of the failed sale.

On the 1st, Han & Company stated, "Chairman Hong Won-sik's announcement that the contract was terminated after August 31 is not true and is legally invalid. The contract is still valid, and the court has accepted Han & Company's position and issued a provisional injunction to prevent Chairman Hong's shares from being disposed of arbitrarily."

Earlier, on the 23rd of last month, Han & Company filed a provisional injunction to prohibit electronic registration stock disposal against Chairman Hong, and the Seoul Central District Court granted it.

Han & Company also explained, "After the announcement of the main contract, Chairman Hong's side requested difficult-to-accept matters such as price renegotiation. Then, after mid-August, they suddenly began to present unreasonable demands as 'preconditions' for closing the deal."

Regarding Chairman Hong's side's claim that this contract is "unequal and only favorable to the buyer," Han & Company firmly denied it as groundless.

In particular, Han & Company emphasized that Chairman Hong's side, after consulting M&A experts, reached an agreement through considerable negotiation and was the party that demanded strong measures to guarantee the certainty of the transaction.

Meanwhile, Namyang Dairy Products caused a stir in April by announcing that its product 'Bulgari' was effective in preventing COVID-19. In response, Chairman Hong took responsibility and signed a contract in May to resign as chairman and sell his shares in Namyang Dairy Products to Han & Company.

However, when Namyang Dairy Products suddenly postponed the extraordinary shareholders' meeting in July to sell the shares and management rights of Chairman Hong's family, Han & Company took legal action, including filing a lawsuit demanding the fulfillment of the deal closing obligations.

After conflicts, Chairman Hong finally notified the contract termination citing Han & Company's refusal to fulfill prior agreements, resulting in the collapse of the Namyang Dairy Products sale.

However, as the court ruled in favor of Han & Company and prohibited the sale of Namyang Dairy Products shares, it has become difficult for Chairman Hong's side to find another buyer.

Chairman Hong's legal representative, law firm LKB & Partners, stated, "The provisional injunction prohibiting disposal has no effect on the transfer of shares. We plan to respond legally immediately to the injunction that was unilaterally filed before termination."

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