Namyang Dairy Products: Long Legal Dispute to Be Finally Decided by Supreme Court in January 2024

• The Korean Supreme Court's ruling on the stock transfer lawsuit between Hahn & Company private equity fund and Namyang Dairy's Chairman Hong Won-Sik is confirmed for 4 January 2024.

• The expectation of Hahn & Co winning this legal dispute has positively impacted the share price of Namyang Dairy Products.

• The higher probability scenario is for the Korean Supreme Court to rule in favor of Hahn & Co, agreeing with the decisions of the two lower courts in Korea.

Namyang Dairy Products Co (003920 KS) shares are up 27% in the past two trading days. There has been recent local news flow that mentioned the Korean Supreme Court's ruling on the stock transfer lawsuit between Hahn & Company private equity fund and Namyang Dairy's Chairman Hong Won-Sik is confirmed for 4 January 2024.

For more than two years, Namyang Dairy's share price has been negatively impacted by the uncertainty on the legal dispute between Hahn & Co and Namyang Dairy Products. However, the expectation of Hahn & Co winning this legal dispute has positively impacted its share price.

In May 2021, Namyang Dairy Products Chairman Hong Won-Sik signed a stock sales agreement to sell a 53.08% stake in the company to Hahn & Co. However, Chairman Hong disrupted the entire sale process such as by postponing the extraordinary shareholders' meeting to sell controlling ownership management rights.

In August 2021, Hahn & Co filed a lawsuit against Chairman Hong in disrupting this sales process. In the past two years, the two lower courts in Korea (district court and high court) both ruled in favor of Hahn & Co. If the Supreme Court rules in favor of Hahn & Co once again, then this lawsuit will finally come to an end and Hahn & Co will take over the controlling ownership of the company.