SM shares more than 150,000 won… Kakao is also becoming difficult to tender

SM entertainment logo [SM엔터테인먼트 제공]

On the 8th, the second day of Kakao’s tender offer for SM Entertainment, SM’s share price exceeded the tender offer price of 150,000 won, raising a red flag for Kakao’s plan to secure a stake.

In the KOSDAQ market on this day, SM finished trading at 158,500 won, up 5.88% from the previous trading day.

Kakao’s plan to secure up to 35% of SM shares at 150,000 won per share by the 26th of this month is not guaranteed to succeed as SM’s share price is above 150,000 won just a day after Kakao start the tender offer.

If SM’s stock price exceeds 150,000 won throughout Kakao’s tender offer period, SM shareholders have no incentive to accept the tender offer because they can receive a higher price if they sell their shares on the market.

Previously, Hive failed to reach its target volume (25%) as the price of SM shares exceeded 120,000 won on the third trading day of the tender offer and exceeded the 120,000 won on the last day of subscription of the tender offer.

Some media reported that Hive is considering a tender offer aimed at securing a 25% stake in SM at 180,000 won per share. Currently, Hive is known to be discussing several countermeasures.

[전국매일신문] Reporter Jegal-eun

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