SM’s market valuation – currently around 3.14 trillion won – could triple in three years if the issues previously weighing on the stock, such as governance, are ironed out, Lee estimates.
“Any director appointed by HYBE will serve for HYBE … not for the 60% minority shareholders,” said Lee, who has been nominated by SM’s management for a seat on the board of directors at an annual shareholder meeting next month. has been designated.
Align’s Lee said it would become a proxy battle with SM’s current executives to woo shareholders with plans to improve SM’s sales and profitability.
HYBE said in a statement on Thursday it “plans to make every effort to overhaul SM Entertainment’s governance structure” and that its tender offer is the same price paid to SM’s founder as it is to increase profits for minority shareholders. works for.
“The directors (proposed by HYBE) will seek to make SM Entertainment a company … that puts shareholder rights first,” HYBE said, adding that it will faithfully engage with antitrust watchdog Fair Trade Commission’s review .
According to internal data provided by Blind, an unnamed professional networking website, 220 out of 259, or about 85%, verified SM employees using the network supported the company’s current executives and Kakao, while the remaining 39 supported HYBE. supported the plan.