[Featured Stocks] Hive and SM-Related Stocks Rise Consecutively in SM Acquisition Battle... Kakao Declines ↓

[Asia Economy Reporter Kwon Jae-hee] As HYBE joins the acquisition battle for SM (SM Entertainment), the stock prices of related companies such as HYBE and SM are showing strong gains day after day.

As of 9:05 a.m. on the 13th, SM C&C is trading at 5,210 KRW on the KOSDAQ market, up 12.53% compared to the previous trading day. SM (SM Entertainment) is recording 117,000 KRW, up 2.01%.

SM's stock price is close to the public tender offer price of 120,000 KRW proposed by HYBE.

On the KOSPI market, HYBE is also trading at 197,300 KRW, up 1.02%.

In the securities industry, it is expected that HYBE's position as the largest K-pop operator will be solidified if it completes the acquisition of SM's shares.

Namsoo Lee, a researcher at Kiwoom Securities, raised the target price for HYBE from 175,000 KRW to 265,000 KRW on the same day, analyzing that "if HYBE succeeds in acquiring SM, operating profit will increase by 50%, and net profit attributable to controlling shareholders will rise by 15%."

On the other hand, Kakao, the second largest shareholder of SM, is continuing its downward trend, falling 2.66% to 65,800 KRW, following the previous trading day.

Earlier, Kakao, which secured a 9.05% stake in SM to become the second largest shareholder, maintains the position that "the paid-in capital increase is the result of long-term synergy and business cooperation discussions between the two companies and is unrelated to the management dispute of SM Entertainment."