Allain "The disclosed purchase price of 120,000 won by HYBE for SM is too low"

[Image source=Yonhap News]

[Asia Economy Reporter Park So-yeon] Activist fund Align Partners stated on the 10th regarding HYBE's acquisition of SM shares and the tender offer, "The tender offer price of 120,000 KRW is too low considering the expected increase in sales and operating profit from the execution of SM 3.0 multi-producing strategy, as well as the upside from streamlining non-core businesses, non-operating assets, and internal transactions." Align added, "The tender offer price must be significantly increased," and "Detailed information will be disclosed later."

They continued, "Since the purpose is to control the board and secure management rights, the tender offer should be made not only for the 25% stake but for all shares held by general investors." They also emphasized, "HYBE operates in the entertainment industry just like SM, so there may be various business exchanges between HYBE and SM in the future," adding, "In this case, if HYBE does not own 100% of SM's shares, conflicts of interest may arise between SM's general shareholders and HYBE's shareholders while HYBE controls SM's decision-making." Align stated that they will disclose further detailed positions in the future.

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