Court Grants Injunction Prohibiting Kakao's Acquisition of SM New Shares

Lee Soo-man, Injunction Granted to Prohibit SM from Issuing New Shares and Convertible Bonds

[Image source=Yonhap News]

[Asia Economy Reporter Jang Sehee] The court ruled in favor of former chief producer Lee Soo-man in a provisional injunction request to block Kakao's paid-in capital increase and convertible bond issuance.

The Seoul Eastern District Court Civil Agreement Division 21 (Chief Judge Kim Yuseong) approved Lee Soo-man's provisional injunction request to prohibit the issuance of new shares and convertible bonds by SM.

As a result, Kakao's acquisition of a 9.05% stake in SM has been abruptly halted, giving the largest shareholder HYBE an advantageous position in the SM acquisition battle.