Hive disposes of 750,000 SM Entertainment shares in block deal… 'War of Jjen' 200,000 Won in danger of collapse
HYBE's stock price hovered around 200,000 won. HYBE, whose stock price plummeted as the conflict with Ador CEO Min Hee-jin intensified, announced that it would dispose of its shares in SM Entertainment through a block deal (after-hours bulk trading), increasing uncertainty in its stock price.
According to the Korea Exchange on the 28th, HYBE was traded at 200,500 won, down 3,000 won at 9:04 on this day. HYBE, which started trading at 241,500 won on January 2, the first trading day of the year, fell to the 180,000 won range for the first time this year due to internal conflict with Ador CEO Min Hee-jin and poor performance in the first quarter.
The stock price hit the lowest this year at 186,800 won on the 22nd, but the stock price dropped by 2 since the 10th (200,500 won) due to the comeback of singer New Jeans and BTS member RM and expectations of the lifting of the Chinese ban. After a week, it returned to the 200,000 won level.
Previously, HYBE requested Ador to hold a board of directors meeting last month to replace the management of its subsidiary Ador. This is because it was confirmed that a plan to seize management rights was established led by CEO Min. However, CEO Min refused to convene the board of directors, and on the 25th of last month, HYBE submitted an application to the court for permission to hold a temporary general meeting of shareholders.
Currently, the court is hearing a provisional injunction banning the exercise of voting rights filed by CEO Min against HYBE. The results are expected to be released before the general shareholders' meeting scheduled for the 31st. If the court rejects the request for a preliminary injunction, HYBE, which owns an 80% stake in Ador, is expected to take steps to dismiss CEO Min. If the injunction is granted, it is highly likely that the conflict between HYBE and Ador will continue.
On this day, HYBE announced that it had sold 755,522 shares of SM Entertainment through a block deal (after-hours bulk trading). The disposal amount is 68,398.16 million won, equivalent to 2.20% of equity capital. HYBE acquired a 14.8% stake at 120,000 won per share from former SM general producer Lee Soo-man during the SM takeover battle last year. HYBE, which later sold part of its stock to Kakao, secured an additional 3.68% stake in February when former general producer Lee exercised the put option he had at the time of the stock transfer agreement.
The financial investment industry estimates that the short-term uncertainty surrounding HYBE is affecting the decline in stock prices. Ji In-hae, a researcher at Shinhan Investment & Securities, said, “One of the reasons the entertainment industry was well received in the market was the multi-label system.” He added, “CEO Min pointed out the similarity of content, making us reconsider the scalability and existence value of multi-labels.” He said.
Park Soo-young, a researcher at Hanwha Investment & Securities, said, “The market will wait and see until (the management dispute between HYBE and Ador) is concluded.” He added, “It will be a confirmation of how easily HYBE is criticizing this incident, in other words, how mature the company is. “It is necessary,” he said.
Source:
https://v.daum.net/v/20240528091503944