Kakao plans to buy 35% of SM shares to become the agency’s majority shareholder, Soompi
Cocoa will finally enter the dance.
It’s only been two weeks since HYBE officially became the majority shareholder of SM Entertainment, but that status is already disputed.
In fact, on March 7th, we learned that HYBE’s bid to acquire new shares in SM Entertainment had fallen through as the company had only received 0.98% additional shares instead of HYBE’s expected 25%.
Kakao subsequently announced its intention to become the majority shareholder of SM Entertainment and double-take HYBE.
The financial media announce that Kakao plans to become the majority shareholder of SM by buying back 35% of the company’s shares.
Kakao’s bid is 150,000 won per share, up 25% from HYBE’s bid (120,000 won).
This decision was made following an emergency meeting at Kakao on March 6, which resolved to publicly purchase shares of SM Entertainment from March 7-26. It will cost a total of 1.25 trillion won, and it is said that Kakao and KAkao Entertainment will share the cost.
If the operation succeeds, Kakao will largely become SM Entertainment’s majority shareholder with a 35% stake, while HYBE will hold just 15.78% (19.43% by adding Lee Soo Man’s).