The 3rd day of SM Entertainment in Seongdong-gu, Seoul./Reporter Han Soo-bin
The share price of SM Entertainment (SM) exceeded the tender offer offered by Kakao (150,000 won).
On the KOSDAQ market at 9:49 am on the 8th, SM is trading at 152,100 won, up 1.60% from the previous day. On this day, the initial price of SM was formed at 154,100 won, up 2.94% from the previous day.
Kakao and Kakao Entertainment started a tender offer to buy SM shares at 150,000 won per share the day before. The goal is to secure a 35% stake in SM (8,333,641 shares) through a tender offer that will be held until the 26th.
Kakao’s tender offer plan was also lit as SM’s share price exceeded 150,000 won just one day following Kakao and Kakao Enter started their tender offer. This is because when the share price exceeds the tender offer price, shareholders have no incentive to respond to the tender offer.
Hive, which made a tender offer of SM stocks at 120,000 won per share until the 28th of last month, also failed as SM’s share price exceeded 120,000 won during the tender offer period. Hive, which aimed to secure up to a 25% stake in SM through a tender offer, only secured a 0.98% stake.
It is interpreted that the expectation that Hive will take a tender offer of SM shares at a higher price than Kakao is driving up SM stock prices.