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| ▲ 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.)
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