Kakao securing 9.05% of shares in SM Entertainment…Second-largest shareholder

▲ This photo is provided by Kakao. (PHOTO NOT FOR SALE) (Yonhap)

SEOUL, Feb. 7 (Yonhap) - Kakao announced on Tuesday that it has secured a 9.05% stake in SM Entertainment and became the second-largest shareholder.

It is a way to acquire 1.23 million new shares SM Entertainment issued in the form of a paid-in capital increase allocated to a third party, and secure 1.14 million shares (based on conversion of ordinary shares) through the acquisition of convertible bonds.

Kakao also signed a three-way business partnership with Kakao Entertainment and SM Entertainment.

The three companies plan to take the lead in enhancing the global status of K-culture through multilateral business cooperation in a rapidly changing music and content environment.

(This article is translated from Korean to English by Yunhee Cho.)

(END)

(C) Yonhap News Agency. All Rights Reserved