The “management battle” between HYBE Labels, Kakao, and SM Entertainment seems to have reached a conclusive end.
In the latest public offering, Kakao, a famous Korean company, successfully acquired shares of SM Entertainment. With Kakao Corporation holding 20.78% and Kakao Entertainment holding 19.13%, the Kakao Group has become the largest shareholder of SM with a total of 39.91% of the shares.
At the annual shareholders’ meeting scheduled for March 31st, director candidates introduced by Kakao are expected to join the board of directors without any difficulties. According to an amendment announcement on March 24th, all director candidates proposed by HYBE have withdrawn their plans.
Previously, HYBE Labels have purchased shares from SM Entertainment founder, Lee Soo Man, and launched a bid to secure 40% of the agency’s shares. However, the corporation failed to achieve this plan, and later proposed to sell its SM stake to Kakao via a tender offer.
It remains unclear whether HYBE successfully transferred its previously acquired 15.8% of SM shares.
Source: VKR News
