이 기사는 2021년 05월 31일 07:14 thebell 에 표출된 기사입니다.

South Korean private equity (PE) firm Hahn & Co will buy a controlling stake in scandal-ridden Namyang Dairy Products.

Hahn & Co will acquire around 53% of the dairy product maker including 51.68% owned by Namyang's ex-chairman Hong Won-sik, 0.89% owned by Hong’s wife and 0.07% owned by his grandson, for 310.7 billion won ($278 million). Hong’s younger brother Myeong-sik will remain a minority shareholder with a 0.45% stake.

Given the small deal size, the PE firm plans to finance the acquisition through its third blind-pool fund, which closed at 3.8 trillion won in 2019, without using acquisition financing.

Namyang and Hahn & Co didn’t even hire financial advisors to close the deal swiftly. The two companies hired local law firm Kim & Chang as their representative after completing the basic due diligence. Hahn & Co plans to conduct detailed due diligence next, but it is unlikely to take long as Kospi-listed Namyang has simple business structure, industry sources said.

The deal came after Namyang was put under public criticism for claiming that its yogurt drink helps prevent the Covid-19.

Hong offered to resign from the top post earlier this month and vowed to end dynastic control over the family-owned dairy product maker. An emergency committee forced Hong’s mother and his eldest son out of the board.

Hahn & Co plans to introduce an executive officer system to enhance transparency in corporate governance and management efficiency. The PE firm also introduced the system to its portfolio companies including SsangYong C&E and Hanon Systems. (Reporting by Si-eun Park)