[Featured Stock] SM, Kakao's Public Tender Offer Exceeds 150,000 Won... Difficulties Expected

On the 8th, at the start of the trading session, SM Entertainment's (SM) stock price surpassed Kakao's tender offer price of 150,000 KRW.

As of 9:19 AM that day, SM was trading at 152,100 KRW, up 160% from the previous day. Early in the session, it surged to as high as 156,700 KRW, showing strong momentum. Although the rate of increase slowed somewhat, it still remained above 150,000 KRW. This exceeded Kakao's tender offer price of 150,000 KRW. When the stock price exceeds the tender offer price, investors have less incentive to accept the tender offer, which is expected to cause difficulties.

The day before, Kakao announced that, together with Kakao Entertainment (Kakao Enter), it would conduct a tender offer for 8,333,641 shares of SM. The purchase price per share is 150,000 KRW, and they plan to secure 35% of the total issued shares. The funds required for the tender offer were disclosed to be approximately 1.2516 trillion KRW.

Kakao and Kakao Enter stated in their disclosure that they already hold 3.28% and 1.63% of SM shares, respectively. If Kakao's tender offer succeeds, the shareholding ratio held by Kakao is expected to reach 40%.

Meanwhile, HYBE also failed to secure its target stake of 25% as SM's stock price exceeded its tender offer price of 120,000 KRW just three trading days after the tender offer began. HYBE secured only 0.98% of shares through the tender offer.

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