K-pop giant HYBE drops bid for SM Entertainment, ending takeover battle (updated)

SM Entertainment Co

12/03/2023 02:52

(Adds statement from Kakao)
       SEOUL, March 12 (Reuters) - HYBE Co Ltd  352820.KS , the
agency representing top-selling South Korean boy band BTS,
withdrew its plan to take control of SM Entertainment Co Ltd
 041510.KQ , the company said on Sunday.
    The move is seen as ending a weeks-long takeover battle
between HYBE and social media giant Kakao Corp  035720.KS .
    HYBE said its decision to halt the takeover bid came after
the stock market had been showing "signs of overheating due to
competition."
    Kakao last week launched a 1.25 trillion won ($946.80
million) tender bid for up to 35% of SM Entertainment at 150,000
won per share, well above the 120,000 won per share offer from
HYBE for a 25% stake that gained little traction with
shareholders.
        On Friday, shares in SM Entertainment closed at 147,800
won.
    HYBE and Kakao agreed to cooperate on matters related to
their platforms, HYBE added.
    Kakao and SM Entertainment said they welcomed the decision
by HYBE.
    "Kakao and Kakao Entertainment will continue its tender
offer bid until the 26th to secure a further stake and work on
the details of business cooperation between HYBE and SM," Kakao
said in a statement.
($1 = 1,320.2400 won)

 (Reporting by Ju-min Park and Hyunsu Yim; Editing by William
Mallard and Jamie Freed)
 ((ju-min.park@thomsonreuters.com; Reuters Messaging:
ju-min.park.thomsonreuters.com@reuters.net))