[Photo by Han Joo-hyung]
South Korean private equity firm Hahn & Company has won its lawsuit against Namyang Dairy Products for unilaterally terminating a deal over the controlling stake in the dairy company.
The Seoul Central District Court on Thursday ruled in favor of local private equity firm Hahn & Company, demanding the chairman and the owner family of Namyang Dairy to hand over the controlling stake under agreed terms.
Hahn & Company signed a share purchase agreement (SPA) in May last year to acquire a 53 percent controlling stake in Namyang Dairy held by former chairman Hong Won-sik and his family members for 310.7 billion won ($220 million) but the dairy company called off the deal on September 1.
Hong’s representatives claimed that they terminated the contract because Hahn & Company interfered with management and violated the confidentiality clause.
The court, however, ruled that the terms of the contract were valid and effective.
After the ruling, Hong’s representatives announced that they plan to immediately appeal the decision.
Another case Hong filed against Hahn & Company seeking damage of 31 billion won for liability in the collapse in the deal remains pending.
Shares of Namyang Dairy closed down 5.33 percent at 417,500 won on Thursday.
[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]