China Entertainment News www.yule.com.cn According to Korean media reports, in addition to purchasing the shares held by Lee Soo Man, HYBE will also purchase the shares of small and medium shareholders of SM at a high price, which is expected to cost another 3.8 billion yuan.
The purchase price offered by HYBE is 120,000 won (approximately RMB 650) per share, which is higher than SM Entertainment’s share price of 117,000 won (approximately RMB 632) this morning. Considerable allure. HYBE is expected to spend 714.2 billion won (about 3.8 billion yuan) for the acquisition. HYBE previously purchased a 14.8% stake in SM Entertainment held by Li Xiuman at a price of 435.6 billion won (approximately RMB 2.3 billion). % of the shares, and the remaining 3.65% shares of Li Xiuman will also be sold to HYBE after review by the Fair Trade Commission, so that HYBE will hold 43.5% of the shares of SM Entertainment, which will allow HYBE to control SM Entertainment. The operation has more say.
KAKAO, which competes with HYBE Entertainment for SM Entertainment, has not yet issued any response to HYBE’s acquisition plan. An industry insider said that KAKAO previously claimed that it had no intention of competing for the management rights of the company when it carried out paid capital increase and debt conversion in order to obtain 9% of SM Entertainment’s shares. Moreover, it is quite a burden for KAKAO to offer a price higher than HYBE’s asking price. Both KAKAO’s paid capital increase and HYBE’s public acquisition will be carried out on the 6th of next month. Therefore, if KAKAO plans to counter HABR, it must introduce specific measures before the 6th of next month.