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Photo = Yonhap news |
[Alpha Biz= Paul Lee] SEOUL, July 9 – South Korea’s largest private equity firm, Hahn & Company, will reward employees of NAMYANG Dairy Products Co., Ltd. (KRX: 003920) with approximately KRW 1 million (USD 720) worth of company shares per person, in recognition of their contribution to the company’s financial turnaround.
NAMYANG announced in a regulatory filing on Tuesday that it had approved the allocation of 24,736 treasury shares—16 shares per person—to its 1,546 regular employees, amounting to approximately KRW 1.6 billion in total. Additionally, the board approved the cancellation of 131,346 treasury shares worth approximately KRW 9.8 billion.
Based on the current share price of KRW 64,800, each employee will receive about KRW 1.04 million in shares. NAMYANG also stated that the company will fully cover any tax obligations arising from the grant. Employees will be able to freely sell the awarded shares without any restrictions.
Following the grant and share cancellation, NAMYANG’s total treasury shares will decrease from 268,132 shares (4.4% stake) to 161,522 shares (2.7% stake).
The move comes as part of Hahn & Company’s effort to share the fruits of NAMYANG’s turnaround with employees. The company returned to profitability in Q3 2023 after years of losses during a management dispute involving former chairman Hong Won-sik. Hahn & Company officially took control of NAMYANG in January 2023 following a protracted legal battle and has since implemented a series of governance and shareholder-friendly reforms, including the introduction of an executive officer system, the creation of a compliance committee, a 10-to-1 stock split, and multiple share buybacks and cancellations.
“This decision was made to share the achievements brought about by the dedication of our employees,” a Hahn & Company spokesperson said. “We hope to continue sharing in the rewards of the company’s future growth.”
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
