Kakao Successfully Acquires SM After Trials and Tribulations... Secures 39.87% Stake

Kakao announced on the 28th through the SM Entertainment (SM) tender offer result report that, together with Kakao Entertainment, it purchased 8,333,641 shares of SM stock at 150,000 KRW per share as planned from the 7th to the 26th.

The structure is such that Kakao and Kakao Entertainment each purchased half of the 8,333,641 shares, which account for 34.97% of SM's total issued shares.

Previously, Kakao and Kakao Entertainment held 3.27% (780,000 shares) and 1.63% (387,400 shares) of SM shares respectively, totaling 4.9%. Following the tender offer, their stakes increased to 20.76% and 19.11% respectively, securing a combined total of 39.87%.

With this, Kakao surpassed the existing largest shareholder, HYBE, to become the largest shareholder.

The tender offer received subscription applications totaling 18,880,227 shares, resulting in a final competition rate of approximately 2.27 to 1. Kakao will not purchase subscription amounts exceeding the target and will allocate the purchase volume proportionally.

From this day forward, the trading restrictions on SM tender offer subscription shares are lifted, allowing for on-market trading.

Meanwhile, as of 2:11 PM on the same day, SM's stock price was trading at 94,500 KRW, up 3,400 KRW (3.73%) from the previous day.