[Alpha Biz=(Chicago) Reporter Paul Lee] HYBE's stock tender offer to secure management rights for SM Entertainment (hereinafter referred to as SM) ended in failure.
HYBE announced on the 6th that it had secured an additional 0.98% stake through a tender offer for SM shares. This is only 3.9% of the amount (5,951,826 shares) that HYBE originally intended to purchase.
The number of shares that responded to the HYBE's tender offer this time is 233,817 shares, with only four shares coming in as public purchases except for the Galaxy SM. Earlier, Galaxy SM, a sports marketing company affiliated with Hyosung Group, announced in its own disclosure that it sold 233,813 shares in response to Hive's tender offer.
In addition to the 14.8% stake sold by former general producer Lee Soo-man to Hive, HYBE has secured 15.78% of SM so far. Even if the remaining 3.65% of Lee Soo-man's stake with put option is combined, Hive's stake will remain at 19.43%.
HYBE tried to secure stable management rights by publicly buying SM shares by 25% of the total number of issued shares for KRW 120,000 per share from the 10th of last month to the 1st of this month, but failed as SM's stock price exceeded the KRW 120,000 mark.
In the end, the management dispute is expected to be decided at the shareholders' meeting on the 31st.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
