Min Hee-jin Notifies HYBE of Put Option Exercise Worth 26 Bln Won

▲ Min Hee-jin, former CEO of ADOR, is seen in this undated file photo provided by the company. (PHOTO NOT FOR SALE) (Yonhap)

SEOUL, Nov. 14 (Yonhap) -- Min Hee-jin, former head of ADOR, recently informed HYBE that she would exercise her put option on ADOR shares, estimated to be valued at approximately 26 billion won (USD$ 19 million). 

This put option was a key component of a shareholder agreement between Min and HYBE, drawing attention to her decision's potential motivations.

According to industry sources on the 14th, Min notified HYBE of her intent to exercise the put option earlier this month. Under her agreement with HYBE, she can receive an amount based on 75% of her stake's value, which is calculated by multiplying ADOR’s average operating profit for the past two years by a factor of 13. 

For this exercise, the relevant fiscal years are 2022 and 2023. ADOR's operating income during this period was a loss of 4 billion won in 2022, with a turnaround to 33.5 billion won in 2023, likely due to the debut of ADOR’s only artist, NewJeans, mid-2022.

Min could have potentially obtained a higher payout had she waited to include 2024 in the profit calculation. As of April, ADOR’s audit report indicated that she held 573,160 shares (18% of ADOR), supporting the estimate of her 26 billion won payout.

Reportedly, Shin and Kim, former ADOR executives closely associated with Min, also notified HYBE of their intent to exercise their put options on the same day.

Min spoke on music critic Kim Young-dae’s YouTube channel on Oct. 29, denying claims that she intended to leave HYBE, and described herself as the target of a “false narrative.” In a separate statement on Nov. 5, she refuted rumors that she had received investment or entered contracts with outside parties, calling such claims baseless.

However, receiving this payout may require legal proceedings, as HYBE terminated the shareholder agreement in July, citing a breach of trust. Min, however, maintains the contract remains in force.

Meanwhile, NewJeans has issued a notice to ADOR, stating that they will terminate their exclusive contracts unless their demands are met within 14 days.

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