Kakao offers to buy 35% of K-pop firm SM in growing battle
South Korean technology firm Kakao has launched a tender offer to buy up to 35% of K-pop agency SM Entertainment and become its largest shareholder, escalating a battle with entertainment firm Hybe for control of the company
HONG KONG (AP) — South Korean technology firm Kakao launched a tender offer to buy up to 35% of K-pop agency SM Entertainment and become its largest shareholder, escalating Tuesday a battle with entertainment firm Hybe for control of the company.
Kakao offered a tender price of 150,000 won ($115) per share, making the total value of the offer 1.25 trillion won ($960 million). SM, the group behind popular K-pop groups such as NCT and aespa, saw its shares jump over 15% to 149,700 won.
Kakao currently owns about 4.9% of shares in SM. If the tender offer is successful, the firm would control about 40% of SM shares and successfully fend off Hybe’s attempt to control SM Entertainment.
SM’s top executives expressed support for Kakao’s “friendly” tender offer and described the technology firm as the “optimal strategic cooperative partner” in a statement Tuesday.
