Fibonacci Asset Management "Actively Welcomes Namyang Dairy Shareholder Return Policy"... Expects Consistent Capital Allocation Standards

"Decision to Buy Back Treasury Shares Realizes the Principle of Equitable Shareholder Returns"

"A Milestone for Shareholder Value-Oriented Governance Improvement Following Hahn & Company's Acquisition"

Fibonacci Asset Management, a general private equity fund manager holding both common and preferred shares of Namyang Dairy Products, stated on the 19th, "We actively welcome and support Namyang Dairy Products' shareholder return policy announced on the 12th, including the buyback of treasury shares and the special dividend."

Fibonacci Asset Management highly valued the inclusion of preferred shares in the scope of the current treasury share buyback. The firm noted that this is significant as it takes into account the preferred shareholders who have been relatively neglected until now. Through this announcement, Namyang Dairy Products emphasized, "We will return compensation for the breach of trust and embezzlement by the previous major shareholder to shareholders as a special dividend, in line with the spirit of the case," and added, "We will ensure that the benefits of shareholder returns are distributed equally to both common and preferred shareholders."

Fibonacci Asset Management analyzed that this decision not only realizes the principle of shareholder equality but also constitutes a financially rational capital allocation strategy. From the perspective of cost of equity, as emphasized by the Korea Exchange's "Value-up Program" guidelines, preferred shares—which offer higher dividend yields and are undervalued compared to common shares—entail a higher actual capital cost for the company. Therefore, buying back and retiring preferred shares lowers the overall capital cost and enhances corporate value, which, in turn, is also a positive strategy for common shareholders.

Tae Hyukjin, CEO of Fibonacci Asset Management, said, "This move by Hahn & Company, Korea's largest private equity fund, after acquiring management control of Namyang Dairy Products, will serve as a milestone for governance improvement in Korea," and added, "We hope that the special dividend and treasury share buyback will lead to a sustainable shareholder return policy, rather than being a one-time event."

CEO Tae further stated, "We also expect that any future improvements in operating performance, the efficient utilization of idle assets, and other one-off gains will proportionally guarantee the interests of all shareholders."

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