SEOUL-- South Korea's No. 2 dairy company, Namyang Dairy Products Co., said Friday that its controlling shareholders -- Chairman Hong Won-sik and his family -- have signed a deal to sell the company's management rights and majority stake to mid-sized local business group Dayou Winia Group.
Namyang said the sale can go ahead only if it wins a legal dispute with local private equity fund Hahn & Company. But if Hahn & Company wins the dispute, Namyang would have to sell its majority stake to the private equity fund.
Details of the prices of the major stake sale and the date to finalize the deal were not available, Namyang said.
In late May, Hong and his family struck a deal with Hahn & Company to sell a 53 percent stake in Namyang Dairy Products for 310.7 billion won ($262.1 million).
The largest shareholders of the dairy firm did not conclude the deal on July 30, delaying the shareholders' meeting to approve the deal.
In August, Hahn & Company filed a lawsuit against Namyang Dairy Products to honor the contract.
In response to the lawsuit, Hong and his family informed Hahn & Company of the deal falling through on Sept. 1.
Source: Yonhap News Agency