HYBE To Sell All Of Its SM Entertainment Shares, Kakao Predicted To Acquire A 35% Stake
HYBE has decided to participate in Kakao‘s public purchase of SM Entertainment shares. The public purchase, which concludes on March 24, 2023, will likely be successful as Kakao has decided to buy up all the available shares.
According to media outlets, on March 24, 2023, HYBE’s board of directors announced that it had decided to dispose of its 3,737,237 shares of SM Entertainment. They previously acquired 14.8% (3,523,420) shares from founder Lee Soo Man in February and made an additional purchase of 0.98% (233,817) shares during the first public purchase, securing a total of 15.78% stake in the company.
Since HYBE has decided to dispose of all 15.78% of its stake in SM Entertainment, Kakao will likely end up absorbing all of HYBE’s shares. Kakao has announced that it will complete a purchase of 35% stake in SM Entertainment by March 26, 2023. Analysts predict that the other shareholders will likely participate in the public purchase as the stock price has fluctuated greatly.
It is highly likely that Kakao will successfully manage to acquire the shares they desire by the end of the month.
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