SM Entertainment "Withdrawal of Shareholders' Meeting Agenda to Change Capital Increase Limit"

[Asia Economy Reporter Ji Yeon-jin] SM Entertainment (SM) announced on the 25th that it will withdraw the proposal to partially amend the articles of incorporation to adjust the limit on third-party allotment paid-in capital increase, which was submitted as an agenda item for the regular general meeting of shareholders to be held on the 31st of this month.

In a statement released that day, SM Entertainment explained the background of the amendment, saying, "The current articles of incorporation allow a limit on third-party allotment paid-in capital increase of 30% of the total issued shares, which is almost exhausted, leaving only about 1.23 million shares (equivalent to a 4.9% stake) available for additional allotment. Under the current articles of incorporation, it is difficult to attract strong partners for global business expansion."

However, the company stated, "Since this partial amendment proposal was added close to the deadline for agenda submission, and it included issues such as dilution of existing shareholders' stakes and changes to the record date for shareholders entitled to attend the regular general meeting, we received many concerns from shareholders worried about the company after the announcement of this proposal. Therefore, we have decided to withdraw the partial amendment of the articles of incorporation from the agenda of the shareholders' meeting."

The company also emphasized, "By submitting a cash dividend proposal to the shareholders' meeting for the first time this year, we have shown our intention to move away from the previous no-dividend policy and pursue more shareholder-friendly policies. We will exercise greater caution in reviewing and implementing matters closely related to shareholders' interests in the future."

This content was produced with the assistance of AI translation services.