Prosecutors and financial authorities launched a search and seizure related to the suspicion of market manipulation that arose during the acquisition of SM entertainment.
According to the legal community on April 18th, the Seoul southern district prosecutor’s office’s financial investigation division 2 sent an investigator from the financial supervisory service to the headquarters of sm entertainment located in seongsu-dong, seoul on charges of stock price manipulation and violation of the reporting obligation to obtain related data.
Earlier in february, hybe purchased sm shares at 120,000 won per share and planned to secure a stake of up to 25%. however, as certain forces bought large amounts of sm shares, sm’s stock price soared, and eventually they gave up taking over sm management rights. after agreeing to cooperate with hybe, kakao succeeded in making a tender offer and became sm’s largest shareholder (39.9% secured)
In response, hybe filed a complaint with the financial supervisory service, raising suspicions that there was a situation that prevented the tender purchase. earlier this month, the prosecution conducted a search and seizure of the offices of kakao and kakao entertainment in seongnam, gyeonggi province with the same content.
source:(a)
