Hybe, the South Korean music agency behind global superstars BTS, has nominated its own staff as candidates for the board of SM Entertainment, as a battle to take over the K-pop juggernaut heats up.
Hybe recommended Jason Lee, president of the company’s American arm, Jinsoo Jung, its chief legal officer, and Jin Hwa Lee, its financial planning and analysis leader, to join the internal SM board.
Hybe, which bought a 14.8 per cent stake from SM’s founder Lee Soo-man, also offered to purchase another 25 per cent from minority shareholders for a total of Won1.14tn ($900m). But SM’s share price has rallied in recent days, breaching the offer price of Won120,000 per share.
The tender offer was made last Friday, just days after Kakao, the country’s social media giant, agreed to buy a 9.05 per cent stake in SM.
Hybe also announced several measures on Thursday to improve SM’s corporate governance and boost its shareholder value amid mounting speculation that the bidding war could intensify. Kakao is likely to produce a counter offer and more suitors are expected to emerge.
Hybe stressed that it would try to strengthen the proposed new board’s independence to prevent conflicts of interest. It said an electronic voting system should be introduced for minority shareholders, with its proposals set to be put to a vote at the general meeting in March.
SM’s shares have surged about 60 per cent this year. A power struggle between founder Lee and the company’s management has led to an acquisition battle for the music label.
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