HYBE will acquire all of Lee Soo Man's remaining shares in SM Entertainment soon at ~ $78 million USD

On February 28, HYBE Corporation announced that it would soon acquire an additional 869,948 shares of SM Entertainment stocks for 104.3 billion KRW (~ $78.2 million USD). 

The agency commented, "Lee Soo Man recently notified us of his intention to exercise his foot options (stock purchase rights). We are simply fulfilling our end of the contract." 

Previously in early 2023, HYBE acquired a 14.8% stake in SM Entertainment from Lee Soo Man for 422.8 billion KRW (~ $317 million USD) during a fierce bid against Kakao to claim management rights of the K-Pop entertainment label. During this process, foot options for all of Lee Soo Man's remaining shares in SME were also granted to HYBE; however, the deal meant that HYBE had to purchase the stocks at the same price as the stocks it initially acquired during the deal, at 120,000 KRW per share. Currently, SM Entertainment shares are selling at 79,500 KRW per share, meaning HYBE will be paying a much higher price than what is available. 

The acquisition will be finalized on March 7, after which HYBE will possess a 12.6% stake in SM Entertainment. 

Meanwhile, recent rumors claimed that Lee Soo Man and HYBE were seeking to reacquire SM Entertainment in light of the entertainment label's ongoing friction with its current largest shareholder, Kakao.