SM "We Will Pursue 'SM 3.0' Strategy Despite Hostile M&A by HYBE"

Intent to Promote Business Plan 'SM 3.0' with Kakao
Hybe Sends Letter to SM
"Business Cooperation with Kakao Must Be Terminated Immediately"

SM Entertainment (hereinafter SM) announced on the 6th that it will steadfastly pursue the 'SM 3.0' strategy, a business plan established with Kakao.

Ahead of the regular shareholders' meeting scheduled for March 31, SM has expanded and revamped its board proposal campaign website. Through this revamp, SM plans to inform shareholders that HYBE is attempting a hostile merger and acquisition (M&A) and aims to enhance shareholder value by advancing the SM 3.0 strategy.

The SM 3.0 strategy centers on transitioning to a multi-production center and multi-label system, IP monetization strategies, global expansion strategies, and investment strategies, embodying the vision of "leaping forward as a fan- and shareholder-centered global entertainment company." It targets achieving separate sales of 1.2 trillion KRW and operating profit of 430 billion KRW by 2025, with a goal of tripling corporate value within three years.

At this shareholders' meeting, SM proposed key agenda items including ▲establishing a board of directors with the highest level of independence, diversity, and expertise in Korea ▲introducing advanced articles of incorporation for sustainable SM development ▲expanding cash dividends to enhance shareholder value.

SM plans to actively share the SM 3.0 strategy and vision aimed at enhancing value for all shareholders, not just specific ones, by vigorously conducting the ‘SAVE SM 3.0’ campaign until before the shareholders' meeting.

Meanwhile, HYBE sent a letter to SM on the same day outlining follow-up measures in response to the provisional injunction issued by the Nanjoo court prohibiting SM from issuing new shares and convertible bonds.

HYBE demanded that SM ▲refrain from any acts contrary to the intent of the injunction ▲immediately terminate investment contracts such as the new share subscription agreement and convertible bond subscription agreement ▲immediately terminate the business cooperation agreement signed with Kakao ▲withdraw the board recommendation for Kakao’s nominated director candidates and cancel the appointment agenda at the shareholders' meeting.

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