SM management decides to issue new shares and convertible bonds to Kakao
Court citing provisional injunction against Kakao’s ‘prohibition on acquisition of new shares of SM’
Raise your hand Lee Soo-man… Kakao SM stake acquisition brake
[앵커]
Hive gained an advantage as the court accepted a provisional injunction against the issuance of new shares and convertible bonds issued by Soo-Man Lee against the current management of SM.
Lee Soo-man, former executive producer of SM, revealed that ‘The Best’ was Hive to him, and Kakao’s reaction is noteworthy.
This is Reporter Hong Sang-hee.
[기자]
SM’s current management held an emergency board meeting last month and made the decision to issue new shares and convertible bonds with a 9.05% stake and hand them over to Kakao.
If Kakao emerged as the second-largest shareholder, Lee Soo-man, former general producer, who was the first shareholder and former executive producer, who had no choice but to drop his stake, filed an application for an injunction to ban issuance, and the court sided with Lee Soo-man.
The brakes were placed on Kakao’s ability to secure shares in SM.
[김헌식 / 대중문화평론가 : SM 경영진은 경영상의 이유로 신주와 전환사채를 발행했다고 했는데 법원은 그렇게 보지 않고 지배력에 영향을 미치려는 의도로 봤습니다. 그렇기 때문에 위법하다는 이수만 전 총괄 프로듀서의 입장을 동의한 것으로 볼 수 있습니다.]
This gave Hive an advantage.
Suman Lee has already acquired 14.8% of the majority shareholder’s shares, and if the remaining shares of the former general manager with a put option are added, Hive’s stake in SM is close to 20%.
Hive, who became the largest shareholder of SM, said that its illegal attempts to influence the company’s governance were blocked, and that it would make efforts to ensure that SM had an exemplary governance structure.
Former executive producer Lee Soo-man also thought that SM should be given to the best in the industry who can prosper, rather than children or relatives.
Now, attention is focused on Kakao’s move, which has been put on the defensive.
As it has already built a wide business partnership with the current management of SM, there is a prospect that it will not give up its management rights for the synergy effect of platform and entertainment.
Although the initial investment of 900 billion won was secured in Saudi Arabia and other places, as the tender offer requires astronomical costs, it is possible to negotiate strategically with Hive.
SM’s current executives are also expected to engage in public opinion contests asking minority shareholders to delegate their voting rights, so a fierce battle of nerves is expected until the SM shareholders’ meeting to be held on the 31st.
This is Hong Sang-hee from YTN.
YTN Hong Sang-hee ([email protected])
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