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| ▲ This photo shows a company building of Namyang Dairy Products Co. (Yonhap) |
dairy firm-court
Namyang Dairy ordered to honor deal to sell controlling stake to private equity firm
SEOUL, Sept. 22 (Yonhap) -- A Seoul court on Thursday ruled in favor of a private equity fund in a lawsuit it filed against the owner family of Namyang Dairy Products Co., a major dairy firm, to reverse the family's cancellation of a deal to sell their controlling stake to the fund.
In late May last year, Namyang Chairman Hong Won-sik and his family struck a deal with Hahn & Company to sell their combined 53 percent stake in the dairy company.
The owner family, however, canceled the deal in September that year, arguing Hahn & Company unjustly meddled in their firm's management and violated a non-disclosure agreement.
Hahn & Company has since filed the lawsuit demanding Namyang comply with the sales and purchase agreement.
Ruling in favor of the private equity fund, the Seoul Central District Court on Thursday said the sales and purchase agreement stands effective, and Chairman Hong and his family are obliged to sell the stake to Hahn & Company as agreed.
Following the verdict, a legal representative of Hong expressed "regrets" and said he will immediately appeal the ruling.
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