SM Entertainment canceled a deal to issue new shares and convertible bonds with Cocoa. This cancellation was made in accordance with the decision of the court.
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On Monday, March 6, SM Entertainment said it terminated the contract to issue new shares and convertible bonds with the technology giant Cocoasince the former founder of the company Lee Soo Man won a lawsuit in his lawsuit to block this transaction.
current leadership SM Entertainment entered into a strategic partnership with Cocoa earlier this month to offer its new shares worth 111.9 billion won (86.2 million US dollars) as well as convertible bonds worth 105.2 billion won through a third party allocation. Had the deal gone through, Kakao would have become the second largest shareholder SM with a share of 9.05%.
Recall that on Friday, the Seoul Eastern District Court suspended the application Cocoa for the acquisition of a share, satisfying the claim Lee Soo Man for an injunction. The court ruled that SM there is no urgent need for financing and the deal might undermine the value of the assets held Lee Soo Man and other shareholders.
After that MOVES took the next step by demanding the end of the strategic partnership between SM and Cocoa. In an open letter sent to SM early Monday morning MOVES stated that SM following the deal, the partnership with Cocoabecause the injunction made the contract impossible.
“There is a clause in the contract that is unfavorable for SM, but in favor of Kakao, said Hybe. – The current board of directors should carry out their duties by actively using the right received by SM to terminate the contract.”
MOVES also demanded that SM did not take any action contrary to the purpose of the injunction and withdrew the recommendation on the candidate from Cocoa to the board of directors.
Recall that the new Board of Directors SM will be appointed at the annual meeting of shareholders on March 31. Currently MOVES are the largest shareholder SM with a share of regarding 20%.
Zarina © YesAsia.ru
