HYBE has made a statement, requesting voting rights from SM Entertainment's minority shareholders.
Will HYBE be replacing SM Entertainment's current management?
Does HYBE Doubt SM Entertainment's Current Management? Here's What They Said
On February 24, HYBE asked for voting rights from SM Entertainment's minority shareholder, in advance of their general meeting.
It also included Park Byeong Moo (VIG Partners CEO), and accountant Choi Kyu-Dam were suggested by Hive for non-executive director and auditor, respectively.
See their statement below:
"As a leader in the Hallyu Wave and a pioneer of Korean entertainment, SM Entertainment is on the verge of challenging the top three record labels in the world."
"It is essential for the company to establish an excellent governance structure, with executives that are professional, independent, and honest in order to achieve this goal."
"Lately, questions are being raised about the will to comply with the law, such as causing controversy over illegality in the process of issuing new stocks and convertible bonds or purchasing treasury stocks."
SM Entertainment CFO Jang Cheol Hyuk Calls Out HYBE For 'Hostile Takeover'
On February 20, SM Entertainment uploaded a video, featuring its CFO (Chief Financial Officer) Jang Cheol Hyuk.
In the video, the CFO enumerated several points as to why HYBE's acquisition is considered as a "hostile takeover," engaging netizens' curiosity. Cheol Hyuk revealed that the alleged antagonizing nature of its acquisition, is because of lack of disclosure with SM's current board.
Aside from SM's current BOD (board of directors), the CFO also claimed how HYBE also missed out communicating with the M&A (Mergers and Acquisition).
The CFO also called out its effect on K-pop as a whole, raising concerns on ticket prices because of the monopoly. He also recommended HYBE to clarify what kind of "synergy" are they trying to achieve with SM's shares.
In response, HYBE publicized an open letter, clarifying their intentions with SM's merge.
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