▲This photo provided by Yonhap News TV show photo of Lee Soo-man and his nephew. (Yonhap) 

 

 

SEOUL February 22 (Yonhap) -- As HYBE became the biggest shareholder of SM Entertainment on Wednesday, the price of the single stock of SM Entertainment has dropped to a point where it is hanging by a thread at 120 thousand won mark which is the buyout price proposed by HYBE.

According to the Korean Securities Dealers Automated Quotations shortened as KOSDAQ Market, the market has closed with decreased stock price of SM Entertainment by 1.94 percent, which ends up being 121 thousand won.

Throughout the day, the price of SM Entertainment’s single stock has dropped down barely over 120 thousand won, however it has recovered a little bit until the market closed.

Stock price of the SM Entertainment has risen up to little bit over 131 thousand one per share in February 16, however it ended up dropping down to 120 thousand won.

Subsidiaries of SM Entertainments have also suffered from price downfall throughout the market, for example, price of SM C&C’s stock has decreased 2.08 percent, SM Life Design has decreased 1.94 percent, Keyeast has decrease 5.93 percent and more.

However, price of a single stock of HYBE has showcased 3.08 percent increase scoring over 187 thousand won at the end of the market.

On February 23, HYBE has addressed their acquirement of 14.8 percent of SM Entertainment’s stock owned by former executive producer Lee Soo-man after paying the agreed amount.

Although HYBE was expected to acquire the stocks on March 6 however, they have paid off the price bit earlier than what they have planned and became the biggest shareholder of SM Entertainment. Some of the voices within the music industry have addressed that HYBE’s move of purchasing the stocks earlier than their original plan is to safely solidify the acquirement process of the management rights of SM Entertainment.

On February 22, Seoul Eastern District Court held the hearing session regarding the Provisional Disposition Prohibiting the Issuance of New Shares and Convertible Bonds which is Lee Soo-man case against SM Entertainment. Lee Soo-man claimed that currently there is an external force which is providing help in order to take him out of his position. Whereas SM Entertainment rebutted Lee Soo-man’s claim by addressing that former executive producer Lee is incapacitating very normal and logical business decision.

SM Entertainment plans on hosting a corporate information session on February 22 at 4 p.m. to address the tactical coordination between Kakao and SM Entertainment from stakeholders and fans perspective.

(This article is translated from Korean to English by Joonha Yoo)

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