Kakao's Tender Offer ends oversubscribed at 2.266:1. HYBE is only able to sell 6.96% of its 15.78% stake. Expected to hold the remaining 8.82% for at least 6 months.

So that means KAKAO didn't have enough money to pay the people that took the tender offer?

Quote from tokki-swag

So that means KAKAO didn't have enough money to pay the people that took the tender offer?

No, Kakao only committed to purchasing 35% (announced at the start of the tender offer) so they're only required to purchase 35%.

This outcome is expected because I doubt SM share price will ever reach 150k so I'm sure most of SM's minority shareholders tried to take part in the tender offer.

Not clear yet what Hybe will do with their remaining shares, I just hope they don't take too much of a loss.

I feel like everyone who can sell tried to take part in Kakao's tender offer. Seems like about 80% of shareholders participated - I suspect the remaining 20% are shares that for whatever reason have conditional stipulations. Share price won't reach 150k ever again, which is expected - Kakao's paying a premium for management rights.

I'm curious whether Kakao will broker a block sale for Hybe's remaining shares later in the year or if they'll be satisfied staying at 40% stake.

SM stock is settling at around 90k post-tender offer which also is expected since that was the price before management battle rights began back in January.

Quote from tetetete

I thought kakao bought 20% and kakao ent bought 20% so 40% for kakao conglomerate

Did I read wrong?

That sounds right (since the tender offer was a joint venture by Kakao and Kakao ent) but at the end of the day all these shares will be Kakao Ent's.

Kakao the mothership must've really wanted SM because usually the parent company tries not to expose itself to its subsidiaries' risks. So Kakao corp felt it was worth stepping in.

nice

So Kakao, big3 and hybe privilege for SHINee comeback

Let's go