HYBE has become the biggest shareholder of SM Entertainment in a move that has shocked the entire kpop industry.
On February 10, HYBE issued an official statement to announce it acquired 14.8% of the shares owned by the largest shareholder of SM Entertainment for 422.8 billion won (approximately $334.3 million).
With a share of 18.46% owned by the largest shareholder, HYBE has become the largest shareholder through this transaction.
HYBE also plans to participate in the public purchase of shares owned by minority shareholders of SM Entertainment.
Previously, Kakao acquired 9.05% of the total shares of SM Entertainment by acquiring 1.23 million new shares and 1.14 million convertible bonds issued by SM Entertainment, becoming the second largest shareholder. In response, Lee Soo Man made a statement saying that he will take legal action against this clear violation.
Later, Lee Soo Man filed a ban on the issuance of new shares and convertible bonds against SM Entertainment at the Seoul Eastern District Court and quickly changed the situation by joining forces with HYBE.
Source: (A)
