Kakao announces tender offer to gain stable management control over SM

• Published date: 07 March 2023
• Publication title: The Korea Times

Korean tech giant Kakao on Tuesday announced a tender offer for SM Entertainment shares to gain stable management control over the K-pop powerhouse and increase leverage to win the intensifying battle with Hybe.

Kakao and its entertainment unit, Kakao Entertainment, offered 150,000 won ($115.4) per share to acquire an additional 8.33 million shares in SM Entertainment, with a goal to secure a combined 35 percent share, according to the company in a statement.

The tender offer ends March 26.

"Kakao has decided to become the largest shareholder of SM Entertainment in a bid to maintain a stable partnership with the company," Kakao said. "Based on the horizontal partnership between the two companies, we will create great synergy to strengthen the global competitiveness and presence of Korean culture."

Where are singers and fans in SM's management dispute?

Where are singers and fans in SM's management dispute?

2023-03-07 08:24 | K-pop

Kakao's tender offer price is higher than that of Hybe, which offered 120,000 won per share to obtain up to a 25 percent stake in SM Entertainment. But Hybe's plan to acquire a leading stake in SM Entertainment through a tender offer, which ended last Wednesday, fell flat as it purchased less than a 1 percent share.

The price is also higher than the closing price of SM Entertainment of 131,000 won on the previous day on the...