MOVES released a new statement regarding the deal they reached with Cocoa on sm entertainment.
The statement, released on March 12 KST, tells the company that it has put SM Entertainment’s takeover process on hold as of today. It reads as follows:
“HYBE will suspend the acquisition process of SM Entertainment (hereinafter, SM) from March 12. HYBE judged that the market was overheated due to competition with Kakao and Kakao Entertainment, and made a decision after having fully considered that this could have a negative impact on the shareholder value of HYBE.
HYBE has set an appropriate acquisition price range taking into account the tangible and intangible costs that could arise during the post-merger integration of SM from a medium to long-term perspective, by acquiring the shares of the former general producer Lee Soo Man and conducting a tender offer. . However, in the current situation, where competition is intensifying due to additional takeover bids by Kakao and Kakao Entertainment and even the stock market is showing signs of overheating, it was deemed that the price to be offered for SM acquisition exceeded the appropriate range. .
HYBE has taken the decision to suspend the takeover bid process considering that continuing to acquire SM even by conducting a counterbid could negatively impact HYBE’s shareholder value and further fuel market overheating .
Due to this situation, discussions with Kakao have recently taken place and the two companies have reached an overall agreement. HYBE agreed to suspend the process of taking over management rights from SM, and at the same time reached an agreement on the terms of cooperation regarding platforms between the two companies.
Hive, who has decided to put the SM acquisition process on hold after thoroughly considering internal and external factors, expressed its gratitude to everyone who supported and encouraged the acquisition of SM.”
Meanwhile, as previously reported, the rumors that Kakao and HYBE struck a deal started on March 10. The two were competing to become SM Entertainment’s largest shareholder ahead of the March 31 shareholders’ meeting.