Korean entertainment-tech giant Kakao has launched an offer worth close to $1 billion to buy up one third of SM Entertainment and thwart BTS management firm HYBE Corp. from grabbing control.
The Tuesday move follows a Friday court injunction that prevented SM Entertainment from issuing new shares and convertible bonds to Kakao as poison pill against HYBE’s advances. Under that scheme Kakao and its subsidiary Kakao Entertainment would have owned some 9%, making it the second largest shareholder, behind HYBE.
Instead, Kakao is now offering KRW150,000 ($115) apiece to buy 8.33 million SM shares, or 35% of the company’s currently issued share capital, on the open market. Kakao’s offer closes on March 26.
