SBS-SBS Contents Hub to Pursue Comprehensive Stock Swap... "Completing the Media Content Value Chain"

On the 24th, SBS announced that it is promoting a comprehensive stock swap to incorporate its subsidiary, content distribution corporation SBS Contents Hub, as a wholly owned subsidiary.

On the same day, SBS disclosed that its board of directors resolved to approve the stock swap of SBS Contents Hub. SBS Contents Hub also held a board meeting and approved the agenda for the comprehensive stock swap with SBS aimed at completing the media content value chain.

Accordingly, SBS will promote a comprehensive stock swap by issuing shares to SBS Contents Hub shareholders at a ratio of 1 to 0.21088220. Shares owned by SBS and treasury shares held by SBS Contents Hub are excluded from the swap, and on the swap date, SBS will prioritize delivering its treasury shares. This is to protect shareholders.

The two companies plan to restructure their governance through this comprehensive stock swap. After the stock swap, SBS Contents Hub will become a wholly owned subsidiary, and they plan to proceed with a merger with SBS’s drama production subsidiary Studio S.

This aims to establish an integrated structure of production and distribution functions amid the changing media environment, maximize synergy, and grow the newly launched merged corporation into a global mega studio, ultimately enhancing SBS’s corporate and shareholder value.

Meanwhile, since SBS is proceeding with a small-scale stock swap under Article 360-10 of the Commercial Act, the stock swap will be conducted with board approval instead of a shareholders’ meeting, while SBS Contents Hub will approve the stock swap through a shareholders’ meeting. The shareholders’ meeting is scheduled for October 31, and shareholders opposing the stock swap will be able to request a buyout of their shares until November 20, ensuring proper shareholder protection procedures.

The scheduled date for the stock swap between the two companies is December 4, and the distribution date for SBS’s new shares is December 18.

An SBS official stated, “This stock swap marks the official start of completing SBS Group’s powerful media content value chain. Even after the stock swap, we will proceed with growth steps such as mergers and actively enhance shareholder value through shareholder returns.”