HYBE Fails to Buy Back SM Stock and Gets Just 0.98% More Stock – K-GEN
HYBE hits a wall.
While HYBE is attempting to become the majority shareholder of SM Entertainment, the company had acquired a 14.8% stake from Lee Soo Man, the agency’s founder.
Since then, HYBE had made a takeover bid to the shareholders of SM Entertainment with the goal of owning more than 40% of the agency in order to truly become the most influential shareholder and take over the leadership of SM Entertainment.
HYBE’s offer to shareholders was 120,000 won per share, however, SM Entertainment’s share price has already exceeded this threshold and is currently at 149,000 won per share, and HYBE has not been successful at all.
In fact, HYBE planned to buy at least 25% more shares (5,951,826 shares in total), but the agency only received 0.98% (233,817 shares) in SM Entertainment.
The takeover bid has thus officially failed.
And while HYBE hoped to own more than 40% of SM Entertainment’s stock after its bid, the company ended up owning just 19.43% when you add together the shares now held by HYBE and Lee Soo Man.
This halts HYBE’s attempt to gain power over SM Entertainment and should open a loophole for Kakao to make a superior bid to oust HYBE and become the majority shareholder of SM Entertainment.