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| SM엔터테인먼트 이수만 전 총괄 프로듀서와 하이브 방시혁 의장 (사진 = 연합뉴스) |
[Alpha Biz=(Chicago) Reporter Paul Lee] SM Entertainment, which is in a management dispute, publicly expressed opposition to Hybe's public purchase of additional shares on the 20th, which will become its largest shareholder.
SM said in a "statement of Opinion on Public Purchase" announced earlier in the day, "This public offer is unilaterally carried out by Hybe under a separate agreement with the company's largest shareholder (former general producer Lee Soo-man) without any consultation or discussion with the company."
Such hostile public purchase attempts disparage the efforts of artists and employees who have contributed to growth into a leading entertainment company leading the K-pop culture, while at the same time having a negative impact on corporate value, SM said. "There is a serious concern that it will undermine the interests of stakeholders such as shareholders."
SM emphasized, "The company's core business promotion strategy will continue to increase its potential corporate value exceeding the open purchase price (120,000 won)."
On the 3rd of this month, SM announced the 'SM 3.0' vision to speed up record production by establishing a production center and internal and external labels instead of excluding Lee Soo-man from record production.
Since then, as Hybe jumped in before the acquisition of SM on the 10th, SM's stock price has easily surpassed 120,000 won as of 9 a.m. on the same day.
Jang Chul-hyuk, SM CFO (Chief Financial Officer), also posted a video on YouTube earlier in the day, claiming, "If SM and Hive are combined, they will have a monopolistic position accounting for about 66% of the total (K-pop) market sales."
As of the third quarter of last year, 70% of the total market and 89% of performance profits were combined, hindering the diversity of the K-pop market.
CFO Jang also said, "Even if the acquisition of Hibe stake takes place, the future FTC review will serve as a risk factor in SM's future," adding, "If the business combination report is rejected due to monopoly issues, a large number of SM shares are likely to pour into the market, leading to a plunge."
It also said that even if approved for a conditional combination, Hive may reduce the size of the business of SM, a person under investigation, to implement corrective measures proposed by the FTC.
AlphaBIZ 폴리(hoondork1977@alphabiz.co.kr)
