Around 20 percent of SM Entertainment's shares are being sold in the market.
Keep on reading to know more.
SM Entertainment Places 20 Percent of Its Shares in the Market
On August 25 KST, experts in the investment banking industry have reported that SM Entertainment has officially placed 20 percent of its company shares in the market in search for a new ownership.
According to the investment banking industry experts, SM Entertainment has recently merged with one of its subsidiary companies, LIKE Planning, which is formerly known as the company that contained SM Entertainment's founder, Lee Soo Man's shares in the "Big 4" company.
It is known that Lee Soo Man owns abut 18.72 percent of shares in SM Entertainment, making him the largest shareholder in the company.
Lee Soo Man
Following the merging of SM Entertainment and LIKE Planning, which acquires all of Lee Soo Man's shares, SM Entertainment has placed 20 percent of its shares up in the market for sale, including the 18.72 percent that is owned by Lee Soo Man.
READ ALSO: What are the Reasons HYBE, Kakao, and CJ Want to Acquire SM Entertainment? Lee Soo Man Trends Amid Acquisition Battle
According to the experts, they claim that CJ ENM is likely the strongest candidate as of now to purchase the shares, and therefore making them the most likely "new owners" of the top entertainment company.
Previous reports also claim that Lee Soo Man has over an estimated 300 billion won (around $257 million USD) worth of shares in SM Entertainment. Taking into consideration the full market price for the entire 20 percent of shares on sale, as well as the other miscellaneous shares, the shares are estimated to be more 750 billion won (around $642 million USD).
Kakao Entertainment Versus CJ ENM
Currently, the two most likely candidates to buying the shares are CJ ENM and Kakao Entertainment. Between the two companies, reports say Lee Soo Man is leaning more heavily towards CJ ENM.
An investment banking industry expert said that there are currently very hushed discussions taking place between CJ ENM and SM Entertainment. Although CJ ENM is highly interested in purchasing the shares, an amount of over 300 billion won (around $257 million USD) would mark the largest business purchase CJ ENM would have ever made. Thus, both companies are seriously discussing the matter.
READ ALSO: HYBE vs. Kakao vs. CJ: SM Entertainment Acquisition Cost to Rise to 4 Trillion Won - Who Will Win the Battle?
The expert also notes that if the seller and buyer are unable to reach an agreement, the situation may lead to a fallout, and SM Entertainment's search for a new owner could become a long and tiring journey.
Meanwhile, since the entertainment company was found back in 1995, Lee Soo Man has been the largest shareholder in SM Entertainment. Since then, he has allegedly been looking for the best and potential company to take over SM Entertainment and oversee its operations and growth with Lee Soo Man's direct hand in ownership.
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Written by Robyn Joan
