On February 21, HYBE denied that the acquisition of SM Leisure shares was a hostile takeover of SM Leisure.
In accordance with Yonhap Information, HYBE said, “Plan(s) to accumulate rival Okay-pop firm SM Leisure will not be a part of any hostile takeover technique, and it can really assist SM artists advance to the North American market if the plan is realized.”
Beforehand, HYBE – residence to the worldwide celebrity group BTS – agreed to accumulate a 14.8% stake in SM Leisure from Lee Soo Man. The label additionally supplied to purchase a further 25% from different SM shareholders in a young provide and aimed to realize a complete of 40% stake in SM Leisure. This led the present administration of SM Leisure to accuse HYBE of a hostile takeover.
Nevertheless, HYBE defined they aren’t pursuing a hostile takeover. HYBE CEO Park Ji Gained defined, “We do not assume the corporate’s acquisition of SM shares is a hostile takeover. That is as a result of we agreed to purchase shares held by SM’s largest shareholder (Lee Soo Man) via mutual consent and publicly supplied to purchase shares from smaller shareholders on the identical situation(s) as the biggest shareholder.”
CEO Park additional elaborated, “HYBE might help SM artists advance into the North American market utilizing BTS’ nice achievements available in the market together with the community and know-how of Ithaca Holdings.“
CEO Park Ji Gained added that “SM Leisure is making an attempt to ascertain a multi-production and label system and utilizing the mental property rights of its artists for merchandise apart from music resembling merchandise and video games. Each methods have lengthy been pursued by HYBE, so it may well assist SM perform its plans.”