HYBE and SM share prices are falling despite the returns of NewJeans and aespa K-Sélection
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HYBE and SM stock prices fall despite returns from NewJeans and aespa

The fact that HYBE sells its stake in SM causes the shares of not only HYBE but also SM Entertainment to fall.

According to the Korea Exchange, HYBE's stock price was worth 100 won as of 300:9 a.m., down 47 percent from the previous session. While the closing price of HYBE stock exceeded 2,06 won over the past two trading days, it fell below 200 won at the start of today's session.

Its price even fell to 199 won. Meanwhile, SM's stock is trading at 000 won on the KOSDAQ market, down 92 percent from the previous session. SM's stock price at one point fell to 200 won, and nearly fell below 3,76 won.

Hybe and SM Entertainment

HYBE previously announced that it would sell 755 of its shares in SM at a price of 522 won per share before the market opened and thus liquidated part of its stake in SM for 95 billion won. During the previous day's demand survey, HYBE planned to sell a base quantity of 531 shares and up to 68,4 shares with a discount rate of 750-000%; it is in fact only the base quantity that was transferred as part of the block transaction, with the application of a maximum discount rate.

Recall that in February last year, HYBE acquired a 14,8 percent stake in SM from former SM executive producer Lee Soo-man at a price of 120 won per share, and secured an additional 000% stake through a tender offer, amid a dispute with Kakao and SM over management rights.

After siding with Kakao, HYBE responded to the takeover bid and reduced its stake to approximately 8%. The exercise of Lee Soo-man's remaining 3,65% put option, however, increased HYBE's stake to 12,58%. This operation caused HYBE to lose an estimated 22,3 billion won through the purchase and sale of SM shares.

HYBE and SM share prices are falling despite the returns of NewJeans and aespa K-Sélection

The return of HYBE and SM artists to the forefront, however, remains overshadowed by the blocking agreement. Indeed, NewJeans and RM from BTS from HYBE made their comeback on the 24th at the same time. As for SM, his representative group aespa officially made their return to the K-pop scene by holding a showcase to celebrate the release of their full album “Armageddon” on the 27th.

Meanwhile, HYBE's stock value is expected to see a turnaround in the near term with the court's ruling on the injunction filed by ADOR CEO Min Hee-jin against HYBE ahead of the shareholders' meeting. shareholders of May 31. Regarding this, Hanwha Investment & Securities Park Soo-young said: “ The market will await the conclusion regarding the management rights conflict between HYBE and ADOR “while adding:” It is necessary to see how HYBE handles this incident ».

HYBE and SM share prices are falling despite the returns of NewJeans and aespa K-Sélection

The lifting of China's ban on Korean cultural content could also have a significant impact on the stock prices of HYBE and SM. According to Ahn Do-young, researcher at Korea Investment & Securities, “ if concerts are allowed in China, SM could earn more than 10 billion won per tour.” It is the SM which will reap the biggest revenues, followed by the YG and as for JYP and HYBE, they will benefit the least. ».

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Doggie

Frankly nothing compares to anything that comes from MHJ and I think many people are like me. Too bad they are still there and bear the Hube name. Hybe doesn't need them to get better and the shares will eventually rise. I trust.

Seagull

Don’t forget that HYBE is the agency that alone garners more turnover than the other agencies combined…

Loli

HYBE is not an agency but a conglomerate

____Moonatic@
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