Alphabiz - Kakao ＂There is no expansion of tender offer＂ ...SM, whose management dispute has ended, plunged 23%

This article is translated by AI company Flitto and Alhpa Biz neural machine translation technology

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[Alpha Biz=(Chicago) Reporter Paul Lee] Kakao confirmed that it would no longer increase its stake in the ongoing public purchase of SM Entertainment. As a result, shares of SM Entertainment, which ended the management dispute, plunged on the 13th.

Analysts say that Kakao and HYBE are no longer competing to buy shares, and the number of public purchases will be tied at up to 35 percent, leaving limited room for SM Entertainment's stock prices to rise in the future.

An official at Kakao told the Seoul economy on the same day, "We plan to make an open purchase only as previously announced and not change it by the deadline."

Kakao and Kakao Entertainment will publicly purchase up to 8,333,641 shares (35%) of SM Entertainment by the 26th for 150,000 won per share. The total amount of money to be spent on the stake purchase is 1.25 trillion won.

 

Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)