CEO Lim Jong-yoon Opposes Merger with OCI
Amid the resolution for the merger between the pharmaceutical giant Hanmi Pharmaceutical Group and the materials and energy-focused OCI Group, signs of a potential management dispute have emerged. This comes as a result of opposition from Lim Jong-yoon, the current CEO of Hanmi Pharmaceutical and the eldest son of the late founder Lim Sung-ki, to the decision for integration.
The decision was reportedly led by CEO Lim Jong-yoon’s mother, Song Young-sook, who serves as the chairperson of Hanmi Pharmaceutical Group and concurrently as the CEO of Hanmi Science, and his younger sister, Lim Ju-hyun, who holds the position of director of strategic planning at Hanmi Science. In the midst of this, CEO Lim has raised objections and voiced dissent.
The day after the announcement of the integration between Hanmi and OCI on Jan. 13 CEO Lim expressed his stance through his personal company, Coree Group’s X, formerly Twitter, account. He stated, “Regarding the announcement of Hanmi Science and OCI, I have not received any form of notice, information, or data from Hanmi or my family,” and added, “I will carefully and comprehensively assess the current situation before officially expressing my position.”
During an interview with the media on the Jan. 14, CEO Lim stated, “A significant decision, involving selling company shares and committing to joint management, was unilaterally taken without proper consideration or communication. I am prepared to use ultimate measures such as applying for an injunction and changing the composition of the board if necessary.”
Earlier on Jan. 12, Hanmi Pharmaceutical Group and OCI Group disclosed that OCI Holdings would invest 770.3 billion won (US$585.78 million) to acquire a total of 27.0% of the shares of Hanmi Science, the holding company of Hanmi Pharmaceutical Group, through a board resolution. This acquisition includes an 18.6% stake through the purchase of existing shares and in-kind contributions and an 8.4% stake through the issuance of new shares. Additionally, key shareholders of Hanmi Science, such as Lim Ju-hyun, the head of Strategic Planning, are set to acquire a 10.4% stake in OCI as part of the integration.
The Hanmi Science shares being transferred to OCI mainly belong to Chairperson Song, while the in-kind contributions involve contracts with Chairperson Song and Director Lim Ju-hyun as the parties involved.
If the contracts proceed as announced, following the completion of the integration, Hanmi Science will become a company of which OCI Holdings holds the largest stake at 27.03%. Additionally, it is anticipated that Hanyang Precision’s Chairman Shin Dong-guk will hold 11.12%, CEO Lim Jong-yoon will have 11.10%, Vice President Lim Jong-hoon, the second son of the late group founder Lim Sung-ki, will own 6.59%, and the National Pension Service will possess 6.76%, according to Hanmi Pharmaceutical Group.
On Jan. 14, Hanmi Pharmaceutical Group released a statement, saying, “The latest integration process was unanimously decided by all members of the Hanmi Science board. CEO Lim Jong-yoon, while serving as an internal director at Hanmi Pharmaceutical, is not a member of the board at Hanmi Science, the holding company.”