Kakao has decided to tender SM Entertainment's shares on the market to acquire up to 35% of the shares.

Kakao, which had been fighting Django in a battle for control of the management with Hive, finally fought back by throwing a match.

According to the announcement of Kakao and Kakao Entertainment today (7th), the two companies will tender a total of 26,15,833 shares of SM Enter shares at KRW 3,641 per share from today to the 35th.

This is equivalent to 12% of SM Enter's shares, and Kakao and Kakao Enter plan to buy them in half.

Kakao's tender offer price has increased by 25% from the 13,100 won per share offered by Hive in its tender offer last month.

It is 14.5% higher than SM Enter's closing price of 19,43 won yesterday.

If the tender offer is successful, Kakao will become SM Enter's largest shareholder, surpassing Hive, which has a total voting stake of 9.05%, including a stake purchased by former SM Enter executive producer Lee Suman.

Kakao's decision to cite a preliminary injunction seems to have stemmed from a sense of crisis that it may be pushed out of the race to secure a stake after the court's decision to cite a preliminary injunction derailed its plan to acquire a 0.98% stake in SM Enter.

As Hive's tender offer to secure the management of SM Enter failed with only 1.1% additional shares, it is interpreted as a strategy to change the tide of the unfavorable situation through a quick counter-buy.

We have live ammunition available for buying.

Kakao recently attracted KRW 500.9 trillion in investment from the Saudi Arabian Sovereign Wealth Fund and the Singapore Investment Authority, of which about KRW 1 billion came in as the first round on 24 May.

The rest will be paid in July.

However, there is a possibility that Hive will fight Kakao's tender offer again at a higher price.

Hive has also secured various management rights, such as raising additional capital, and it is known that it has risked its life before securing voting rights to appoint the board members recommended by SM Enter at the general meeting on the 7st.

(Photo = Yonhap News)